Carvana (NYSE:CVNA – Get Free Report) and Monro Muffler Brake (NASDAQ:MNRO – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.
Earnings and Valuation
This table compares Carvana and Monro Muffler Brake”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carvana | $25.06 billion | 2.64 | $1.41 billion | $1.81 | 33.24 |
| Monro Muffler Brake | $1.16 billion | 0.37 | $2.17 million | $0.22 | 62.07 |
Volatility & Risk
Carvana has a beta of 3.55, suggesting that its share price is 255% more volatile than the S&P 500. Comparatively, Monro Muffler Brake has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500.
Insider & Institutional Ownership
56.7% of Carvana shares are held by institutional investors. 15.2% of Carvana shares are held by company insiders. Comparatively, 5.7% of Monro Muffler Brake 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.
Profitability
This table compares Carvana and Monro Muffler Brake’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carvana | 6.26% | 37.06% | 12.21% |
| Monro Muffler Brake | 0.71% | 0.80% | 0.30% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Carvana and Monro Muffler Brake, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carvana | 0 | 8 | 16 | 1 | 2.72 |
| Monro Muffler Brake | 1 | 2 | 2 | 0 | 2.20 |
Carvana currently has a consensus price target of $83.13, indicating a potential upside of 38.16%. Monro Muffler Brake has a consensus price target of $24.33, indicating a potential upside of 78.20%. Given Monro Muffler Brake’s higher possible upside, analysts plainly believe Monro Muffler Brake is more favorable than Carvana.
Summary
Carvana beats Monro Muffler Brake on 13 of the 15 factors compared between the two stocks.
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.
About Monro Muffler Brake
Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers replacement tires and tire related services, automotive undercar repair services, and routine maintenance services primarily to passenger cars, light trucks, and vans. The company also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. In addition, it operates stores under the brand names of Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse. The company was founded in 1957 and is headquartered in Rochester, New York.
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