America’s Car-Mart (NASDAQ:CRMT) and 2050 Motors (OTCMKTS:ETFM) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.

Valuation and Earnings

This table compares America’s Car-Mart and 2050 Motors’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
America’s Car-Mart $612.20 million 0.92 $36.50 million $3.60 23.22
2050 Motors N/A N/A -$1.18 million N/A N/A

America’s Car-Mart has higher revenue and earnings than 2050 Motors.

Volatility and Risk

America’s Car-Mart has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, 2050 Motors has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Profitability

This table compares America’s Car-Mart and 2050 Motors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
America’s Car-Mart 6.53% 18.04% 9.06%
2050 Motors N/A N/A -2,273.51%

Institutional & Insider Ownership

71.5% of America’s Car-Mart shares are owned by institutional investors. 10.0% of America’s Car-Mart shares are owned by company insiders. Comparatively, 8.7% of 2050 Motors shares are owned 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.

Analyst Ratings

This is a summary of recent ratings and price targets for America’s Car-Mart and 2050 Motors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America’s Car-Mart 0 2 2 0 2.50
2050 Motors 0 0 0 0 N/A

America’s Car-Mart presently has a consensus price target of $94.25, indicating a potential upside of 12.74%. Given America’s Car-Mart’s higher probable upside, equities analysts clearly believe America’s Car-Mart is more favorable than 2050 Motors.

Summary

America’s Car-Mart beats 2050 Motors on 10 of the 10 factors compared between the two stocks.

America’s Car-Mart Company Profile

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 June 28, 2018, it operated 140 dealerships. America's Car-Mart, Inc. was founded in 1981 and is based in Bentonville, Arkansas.

2050 Motors Company Profile

2050 Motors, Inc., a development stage company, intends to import, market, and sell electric automobiles in the United States, Puerto Rico, the United States Territories, and Peru. Its product is e-Go EV, a lightweight carbon fiber electric vehicle. The company was founded in 2012 and is based in North Las Vegas, Nevada.

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