Head-To-Head Contrast: Winmark (NASDAQ:WINA) & Carvana (NYSE:CVNA)

Carvana ( NYSE:CVNA – Get Free Report ) and Winmark ( NASDAQ:WINA – Get Free Report ) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation. Earnings and Valuation This table compares Carvana and Winmark’s revenue, earnings per share (EPS) and valuation. Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Carvana $20.32 billion 3.48 $1.41 billion $1.81 35.48 Winmark $86.53 million 12.15 $41.65 million $11.02 26.57 Carvana has higher revenue and earnings than Winmark. Winmark is trading at a lower price-to-earnings ratio than Carvana, indicating that it is currently the more affordable of the two stocks. 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 held by institutional investors. Comparatively, 73.3% of Winmark shares are held by institutional investors. 15.2% of Carvana shares are held by insiders. Comparatively, 10.4% of Winmark shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth. Analyst Ratings This is a breakdown of recent ratings and recommmendations for Carvana and Winmark, as provided by MarketBeat. Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Carvana 0 8 15 1 2.71 Winmark 0 1 0 0 2.00 Carvana currently has a consensus target price of $84.14, suggesting a potential upside of 31.03%. Given Carvana’s stronger consensus rating and higher possible upside, analysts clearly believe Carvana is more favorable than Winmark. Volatility and Risk 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. Summary Carvana beats Winmark on 10 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 Winmark ( Get Free Report ) 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 un...