Analyzing America’s Car-Mart (NASDAQ:CRMT) & Chewy (NYSE:CHWY)

Chewy (NYSE:CHWY) and America’s Car-Mart (NASDAQ:CRMT) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Institutional and Insider Ownership

93.1% of Chewy shares are held by institutional investors. Comparatively, 89.1% of America’s Car-Mart shares are held by institutional investors. 0.3% of Chewy shares are held by company insiders. Comparatively, 18.4% of America’s Car-Mart shares are held by company 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.

Risk & Volatility

Chewy has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, America’s Car-Mart has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Chewy and America’s Car-Mart, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chewy	0	8	16	1	2.72
America’s Car-Mart	1	2	0	0	1.67

Chewy currently has a consensus price target of $30.45, indicating a potential upside of 45.28%. America’s Car-Mart has a consensus price target of $14.00, indicating a potential upside of 1,246.15%. Given America’s Car-Mart’s higher probable upside, analysts clearly believe America’s Car-Mart is more favorable than Chewy.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chewy	$12.60 billion	0.67	$222.80 million	$0.66	31.76
America’s Car-Mart	$1.28 billion	0.01	-$139.11 million	($23.80)	-0.04

Chewy has higher revenue and earnings than America’s Car-Mart. America’s Car-Mart is trading at a lower price-to-earnings ratio than Chewy, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chewy	2.09%	60.88%	7.83%
America’s Car-Mart	-18.21%	-15.19%	-4.73%

Summary

Chewy beats America’s Car-Mart on 12 of the 14 factors compared between the two stocks.

About Chewy

Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. It provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its retail websites and mobile applications. The company was founded in 2010 and is based in Plantation, Florida.

About America’s Car-Mart

America’s Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer for the used car market in the United States. It primarily sells older model used vehicles and provides financing for its customers. The company was founded in 1981 and is headquartered in Rogers, Arkansas.