Analyzing Carvana (NYSE:CVNA) and eBay (NASDAQ:EBAY)

Carvana (NYSE:CVNAGet Free Report) and eBay (NASDAQ:EBAYGet Free Report) are both large-cap retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Earnings & Valuation

This table compares Carvana and eBay”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carvana $20.32 billion 3.36 $1.41 billion $1.64 37.99
eBay $11.10 billion 4.32 $2.03 billion $4.41 24.50

eBay has lower revenue, but higher earnings than Carvana. eBay is trading at a lower price-to-earnings ratio than Carvana, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carvana 0 5 17 2 2.88
eBay 1 19 13 0 2.36

Carvana currently has a consensus target price of $93.14, indicating a potential upside of 49.48%. eBay has a consensus target price of $108.61, indicating a potential upside of 0.54%. Given Carvana’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Carvana is more favorable than eBay.

Volatility & Risk

Carvana has a beta of 3.45, suggesting that its share price is 245% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Carvana 6.40% 41.46% 12.48%
eBay 17.58% 46.11% 11.97%

Insider and Institutional Ownership

56.7% of Carvana shares are held by institutional investors. Comparatively, 87.5% of eBay shares are held by institutional investors. 15.2% of Carvana shares are held by company insiders. Comparatively, 0.7% of eBay shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Carvana beats eBay on 9 of the 15 factors compared between the two stocks.

About Carvana

(Get Free Report)

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.

About eBay

(Get Free Report)

eBay Inc., together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. The company’s marketplace platform includes its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps. Its platforms enable users to list, sell, and buy various products. The company was founded in 1995 and is headquartered in San Jose, California.

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