Critical Contrast: Carvana (NYSE:CVNA) versus NextMart (OTCMKTS:NXMR)

NextMart (OTCMKTS:NXMR) and Carvana (NYSE:CVNA) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Profitability

This table compares NextMart and Carvana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NextMart	N/A	N/A	N/A
Carvana	3.46%	40.57%	6.60%

Valuation & Earnings

This table compares NextMart and Carvana”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NextMart	N/A	N/A	N/A	N/A	N/A
Carvana	$13.67 billion	5.62	$210.00 million	$3.99	89.52

Carvana has higher revenue and earnings than NextMart.

Insider and Institutional Ownership

56.7% of Carvana shares are held by institutional investors. 56.4% of NextMart shares are held by insiders. Comparatively, 17.1% of Carvana shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NextMart and Carvana, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NextMart	0	0	0	0	0.00
Carvana	0	6	12	0	2.67

Carvana has a consensus price target of $383.4706, suggesting a potential upside of 7.36%. Given Carvana’s stronger consensus rating and higher possible upside, analysts clearly believe Carvana is more favorable than NextMart.

Risk & Volatility

NextMart has a beta of -0.64, indicating that its share price is 164% less volatile than the S&P 500. Comparatively, Carvana has a beta of 3.57, indicating that its share price is 257% more volatile than the S&P 500.

Summary

Carvana beats NextMart on 9 of the 10 factors compared between the two stocks.

About NextMart

NextMart, Inc. does not have significant operations. Previously, it was involved in the art event and art media direct marketing; art-themed products design and marketing; and art themed real estate development businesses. The company was incorporated in 1972 and is based in Scottsdale, Arizona.

About Carvana

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company also operates auction sites. The company was founded in 2012 and is based in Tempe, Arizona.