America’s Car-Mart (CRMT) vs. Its Competitors Critical Comparison

America’s Car-Mart (NASDAQ: CRMT) is one of 20 public companies in the “Automotive dealers & gasoline service stations” industry, but how does it weigh in compared to its competitors? We will compare America’s Car-Mart to related companies based on the strength of its earnings, valuation, analyst recommendations, institutional ownership, profitability, risk and dividends.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
America’s Car-Mart $587.75 million $20.20 million 20.06
America’s Car-Mart Competitors $8.01 billion $220.42 million 12.07

America’s Car-Mart’s competitors have higher revenue and earnings than America’s Car-Mart. America’s Car-Mart is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

82.2% of America’s Car-Mart shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Automotive dealers & gasoline service stations” companies are owned by institutional investors. 11.7% of America’s Car-Mart shares are owned by company insiders. Comparatively, 16.5% of shares of all “Automotive dealers & gasoline service stations” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

America’s Car-Mart has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, America’s Car-Mart’s competitors have a beta of 9.96, suggesting that their average stock price is 896% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
America’s Car-Mart 5.30% 9.91% 5.24%
America’s Car-Mart Competitors 3.22% 33.52% 3.60%

Analyst Recommendations

This is a summary of current ratings and price targets for America’s Car-Mart and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America’s Car-Mart 0 2 0 0 2.00
America’s Car-Mart Competitors 115 619 667 28 2.43

America’s Car-Mart currently has a consensus target price of $47.50, indicating a potential downside of 7.14%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 16.94%. Given America’s Car-Mart’s competitors stronger consensus rating and higher probable upside, analysts clearly believe America’s Car-Mart has less favorable growth aspects than its competitors.

Summary

America’s Car-Mart competitors beat America’s Car-Mart on 9 of the 13 factors compared.

About America’s Car-Mart

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, 2017, it operated 140 dealerships in 11 states in the South-Central United States. America's Car-Mart, Inc. was founded in 1981 and is headquartered in Bentonville, Arkansas.

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