Carvana (NYSE:CVNA – Get Free Report) and Winmark (NASDAQ:WINA – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Earnings and Valuation
This table compares Carvana and Winmark”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carvana | $20.32 billion | 3.66 | $1.41 billion | $1.81 | 37.35 |
| Winmark | $86.53 million | 12.19 | $41.65 million | $11.02 | 26.65 |
Profitability
This table compares Carvana and Winmark’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% |
| Winmark | 47.09% | -99.47% | 103.54% |
Institutional & Insider Ownership
56.7% of Carvana shares are owned by institutional investors. Comparatively, 73.3% of Winmark shares are owned by institutional investors. 15.2% of Carvana shares are owned by insiders. Comparatively, 10.4% of Winmark shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
Carvana has a beta of 3.49, indicating that its share price is 249% more volatile than the S&P 500. Comparatively, Winmark has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and target prices for Carvana and Winmark, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carvana | 0 | 7 | 16 | 1 | 2.75 |
| Winmark | 0 | 1 | 0 | 0 | 2.00 |
Carvana presently has a consensus price target of $84.14, indicating a potential upside of 24.46%. Given Carvana’s stronger consensus rating and higher probable upside, equities analysts plainly believe Carvana is more favorable than Winmark.
Summary
Carvana beats Winmark on 10 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 Winmark
Winmark Corporation, a resale company operates as a franchisor for small business in the United States and Canada. The company franchises retail stores concepts that buy, sell and trade merchandise. It also operates middle-market equipment leasing business. In addition, the company buys and sells used clothing and accessories geared toward the teenage and young adult market under Plato’s Closet brand; and operates stores which buys and sells used and new children’s clothing, toys, furniture, equipment, and accessories primarily to parents of children ages infant to 12 years under the Once Upon A Child brand. Further, it buys, sells, trades in, and used and new sporting goods, equipment, and accessories for various athletic activities including team sports, such as baseball/softball, hockey, football, lacrosse, and soccer, as well as fitness, ski/snowboard, golf, and others under the Play It Again Sports brand; and buys and sells used women’s apparel, shoes, and accessories under the Style Encore brand. Additionally, the company buys, sells, trades in, and used and new musical instruments, speakers, amplifiers, music-related electronics, and related accessories under the Music Go Round brand. Winmark Corporation was incorporated in 1988 and is headquartered in Minneapolis, Minnesota.
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