Vroom (NASDAQ:VRM) and CarLotz (NASDAQ:LOTZ) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.
Insider and Institutional Ownership
88.9% of Vroom shares are owned by institutional investors. Comparatively, 28.3% of CarLotz shares are owned by institutional investors. 17.4% of Vroom shares are owned by insiders. Comparatively, 37.2% of CarLotz shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Vroom and CarLotz’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Vroom and CarLotz’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vroom||$1.36 billion||4.29||-$202.80 million||($2.44)||-17.51|
|CarLotz||$118.63 million||5.74||-$3.54 million||($2.27)||-2.64|
CarLotz has lower revenue, but higher earnings than Vroom. Vroom is trading at a lower price-to-earnings ratio than CarLotz, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current recommendations and price targets for Vroom and CarLotz, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vroom currently has a consensus price target of $57.00, suggesting a potential upside of 33.40%. CarLotz has a consensus price target of $16.00, suggesting a potential upside of 167.11%. Given CarLotz’s stronger consensus rating and higher probable upside, analysts clearly believe CarLotz is more favorable than Vroom.
CarLotz beats Vroom on 9 of the 13 factors compared between the two stocks.
Vroom, Inc. operates an e-commerce platform for buying and selling of new and used cars in the United States. It also offers financing solutions. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. The company was incorporated in 2012 and is headquartered in New York, New York.
CarLotz, Inc. operates as a consignment-to-retail used vehicle marketplace that provides its corporate vehicle sourcing partners and retail sellers of used vehicles. The company serves corporate vehicle sourcing partners, which include fleet leasing companies, rental car companies, banks, captive finance companies, third-party remarketers, wholesalers, companies that manage their own fleets, and original equipment manufacturers; retail sellers of used vehicles to individuals; and retail customers. It operates ten hubs throughout the Mid-Atlantic, Southeast, Southcentral, Midwest, and West Coast regions of the United States. The company was founded in 2011 and is headquartered in Richmond, Virginia.
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