Critical Comparison: SunCar Technology Group (NASDAQ:SDA) & Mister Car Wash (NYSE:MCW)

Mister Car Wash (NYSE:MCW) and SunCar Technology Group (NASDAQ:SDA) are both consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Mister Car Wash and SunCar Technology Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mister Car Wash	1	1	7	0	2.67
SunCar Technology Group	0	0	0	0	N/A

Mister Car Wash presently has a consensus target price of $9.56, indicating a potential upside of 36.61%. Given Mister Car Wash’s higher possible upside, equities analysts clearly believe Mister Car Wash is more favorable than SunCar Technology Group.

Institutional and Insider Ownership

0.3% of SunCar Technology Group shares are owned by institutional investors. 70.0% of Mister Car Wash shares are owned by insiders. Comparatively, 22.2% of SunCar Technology Group shares are owned by 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.

Volatility & Risk

Mister Car Wash has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, SunCar Technology Group has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500.

Profitability

This table compares Mister Car Wash and SunCar Technology Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mister Car Wash	8.04%	9.38%	2.94%
SunCar Technology Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Mister Car Wash and SunCar Technology Group’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mister Car Wash	$927.07 million	2.41	$80.13 million	$0.23	30.43
SunCar Technology Group	$363.75 million	1.97	-$26.91 million	N/A	N/A

Mister Car Wash has higher revenue and earnings than SunCar Technology Group.

Summary

Mister Car Wash beats SunCar Technology Group on 10 of the 11 factors compared between the two stocks.

About Mister Car Wash

Mister Car Wash, Inc., together with its subsidiaries, provides conveyorized car wash services in the United States. It offers express exterior and interior cleaning services. The company serves individual retail and corporate customers. The company was formerly known as Hotshine Holdings, Inc. and changed its name to Mister Car Wash, Inc. in March 2021. Mister Car Wash, Inc. was founded in 1996 and is headquartered in Tucson, Arizona.

About SunCar Technology Group

SunCar Technology Group Inc., through its subsidiaries, provides digitalized automotive after-sales service and online insurance intermediation services in the People's Republic of China. It operates through three segments: Insurance Intermediation Business; Automotive After-Sales Business; and Technology Business. The company offers customized after-sale services to banking, insurance companies, and other customer types; and auto mobile insurance comprising statutory automobile liability insurance and commercial automobile insurance. In addition, it provides auto insurance SaaS products and other technical services. The company is based in Shanghai, China.