Analyzing America’s Car-Mart (NASDAQ:CRMT) & Vroom (NASDAQ:VRM)

America’s Car-Mart (NASDAQ:CRMT) and Vroom (NASDAQ:VRM) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

75.4% of America’s Car-Mart shares are owned by institutional investors. Comparatively, 37.6% of Vroom shares are owned by institutional investors. 11.2% of America’s Car-Mart shares are owned by company 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 summary of current ratings and recommmendations for America’s Car-Mart and Vroom, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America’s Car-Mart 0 0 1 0 3.00
Vroom 2 3 13 0 2.61

America’s Car-Mart currently has a consensus price target of $154.00, suggesting a potential upside of 0.27%. Vroom has a consensus price target of $57.00, suggesting a potential upside of 46.68%. Given Vroom’s higher possible upside, analysts clearly believe Vroom is more favorable than America’s Car-Mart.

Profitability

This table compares America’s Car-Mart and Vroom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
America’s Car-Mart 7.90% 19.84% 9.36%
Vroom N/A N/A N/A

Valuation and Earnings

This table compares America’s Car-Mart and Vroom’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
America’s Car-Mart $744.61 million 1.36 $51.34 million $7.39 20.78
Vroom N/A N/A N/A N/A N/A

America’s Car-Mart has higher revenue and earnings than Vroom.

Summary

America’s Car-Mart beats Vroom on 7 of the 9 factors compared between the two stocks.

America’s Car-Mart Company Profile

America's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company primarily sells older model used vehicles and provides financing for its customers. As of December 17, 2020, it operated 151 dealerships in the South-Central United States. America's Car-Mart, Inc. was founded in 1981 and is based in Rogers, Arkansas.

Vroom Company Profile

Vroom, Inc. operates an e-commerce platform for buying and selling of new and used cars in the United States. It also offers financing solutions. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. The company was incorporated in 2012 and is headquartered in New York, New York.

Receive News & Ratings for America's Car-Mart Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for America's Car-Mart and related companies with MarketBeat.com's FREE daily email newsletter.