America’s Car-Mart (NASDAQ:CRMT) & Cazoo Group (NYSE:CZOO) Financial Analysis

America’s Car-Mart (NASDAQ:CRMTGet Rating) and Cazoo Group (NYSE:CZOOGet Rating) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

73.4% of America’s Car-Mart shares are held by institutional investors. Comparatively, 44.3% of Cazoo Group shares are held by institutional investors. 11.0% of America’s Car-Mart shares are held 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.

Profitability

This table compares America’s Car-Mart and Cazoo Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
America’s Car-Mart 7.70% 20.98% 9.18%
Cazoo Group N/A N/A N/A

Earnings & Valuation

This table compares America’s Car-Mart and Cazoo Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
America’s Car-Mart $1.21 billion 0.53 $93.31 million $13.68 7.29
Cazoo Group $918.30 million 0.84 -$747.38 million N/A N/A

America’s Car-Mart has higher revenue and earnings than Cazoo Group.

Volatility & Risk

America’s Car-Mart has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Cazoo Group has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for America’s Car-Mart and Cazoo Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America’s Car-Mart 1 0 1 0 2.00
Cazoo Group 0 5 0 0 2.00

America’s Car-Mart presently has a consensus price target of $118.00, indicating a potential upside of 18.32%. Cazoo Group has a consensus price target of $2.40, indicating a potential upside of 137.62%. Given Cazoo Group’s higher probable upside, analysts plainly believe Cazoo Group is more favorable than America’s Car-Mart.

Summary

America’s Car-Mart beats Cazoo Group on 8 of the 11 factors compared between the two stocks.

About America’s Car-Mart (Get Rating)

America's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company primarily sells older model used vehicles and provides financing for its customers. As of April 30, 2021, it operated 151 dealerships in the South-Central United States. America's Car-Mart, Inc. was founded in 1981 and is headquartered in Rogers, Arkansas.

About Cazoo Group (Get Rating)

Cazoo Group Ltd operates as an online car retailer in the United Kingdom and rest of Europe. It allows consumers to purchase, finance, and subscribe to a car through online for delivery or collection. The company was founded in 2018 and is headquartered in London, the United Kingdom. Cazoo Group Ltd is a subsidiary of Cazoo Holdings Limited.

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