Rush Enterprises (RUSHB) and Carvana (CVNA) Head to Head Review

Rush Enterprises (NASDAQ:RUSHB) and Carvana (NYSE:CVNA) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.

Insider and Institutional Ownership

9.0% of Rush Enterprises shares are held by institutional investors. Comparatively, 26.6% of Carvana shares are held by institutional investors. 13.9% of Rush Enterprises shares are held by company insiders. Comparatively, 21.7% of Carvana shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Rush Enterprises 3.83% 12.85% 4.52%
Carvana -5.01% -35.13% -8.68%

Valuation & Earnings

This table compares Rush Enterprises and Carvana’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rush Enterprises $4.71 billion 0.29 $172.12 million N/A N/A
Carvana $858.87 million 5.99 -$18.31 million ($1.21) -29.51

Rush Enterprises has higher revenue and earnings than Carvana.

Dividends

Rush Enterprises pays an annual dividend of $0.48 per share and has a dividend yield of 1.4%. Carvana does not pay a dividend.

Volatility & Risk

Rush Enterprises has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Carvana has a beta of 2.11, indicating that its stock price is 111% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Rush Enterprises and Carvana, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rush Enterprises 0 0 0 0 N/A
Carvana 0 4 9 0 2.69

Carvana has a consensus price target of $56.41, indicating a potential upside of 57.96%. Given Carvana’s higher probable upside, analysts clearly believe Carvana is more favorable than Rush Enterprises.

Summary

Rush Enterprises beats Carvana on 7 of the 13 factors compared between the two stocks.

Rush Enterprises Company Profile

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, Mitsubishi Fuso, IC Bus, or Blue Bird; provides new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance to its commercial vehicle customers. The company also offers equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services; and body, chassis upfit, and component installation services, as well as sells tires for use on commercial vehicles. It serves regional and national truck fleets, corporations, local governments, and owner operators. The company operates a network of centers located in the states of Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Tennessee, Texas, Utah, and Virginia. Rush Enterprises, Inc. was founded in 1965 and is headquartered in New Braunfels, Texas.

Carvana Company Profile

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying used cars in the United States. The company purchases, reconditions, sells, and delivers vehicles. Its platform allows customers to research and identify a vehicle; inspect it using company's proprietary 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up. The company was founded in 2012 and is headquartered in Tempe, Arizona.

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