First Advantage (NYSE:FA) and Maplebear (NASDAQ:CART) Head-To-Head Review

Maplebear (NASDAQ:CART) and First Advantage (NYSE:FA) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Valuation & Earnings

This table compares Maplebear and First Advantage”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Maplebear	$3.38 billion	3.34	-$1.62 billion	$1.58	27.21
First Advantage	$860.21 million	2.72	$37.29 million	($0.69)	-19.52

First Advantage has lower revenue, but higher earnings than Maplebear. First Advantage is trading at a lower price-to-earnings ratio than Maplebear, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Maplebear has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, First Advantage has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500.

Profitability

This table compares Maplebear and First Advantage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Maplebear	13.37%	13.78%	10.51%
First Advantage	0.65%	13.16%	7.33%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Maplebear and First Advantage, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Maplebear	0	12	15	1	2.61
First Advantage	0	4	4	0	2.50

Maplebear presently has a consensus target price of $50.61, indicating a potential upside of 17.72%. First Advantage has a consensus target price of $65.80, indicating a potential upside of 388.49%. Given First Advantage’s higher possible upside, analysts plainly believe First Advantage is more favorable than Maplebear.

Institutional & Insider Ownership

63.1% of Maplebear shares are owned by institutional investors. Comparatively, 94.9% of First Advantage shares are owned by institutional investors. 36.0% of Maplebear shares are owned by company insiders. Comparatively, 5.3% of First Advantage shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Maplebear beats First Advantage on 10 of the 14 factors compared between the two stocks.

About Maplebear

Maplebear Inc., doing business as Instacart, engages in the provision of online grocery shopping services to households in North America. It sells and delivers grocery products, as well as pickup services through a mobile application and website. It also operates virtual convenience stores; and provides software-as-a-service solutions to retailers. The company was incorporated in 2012 and is based in San Francisco, California.

About First Advantage

First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products. The company also provides post-onboarding solutions, including criminal records monitoring, healthcare sanctions, motor vehicle records, social media screening, and global sanctions and licenses; and other products comprising fleet/vehicle compliance, hiring tax credits and incentives, resident/tenant screening, and investigative research. Its products and solutions are used by personnel in recruiting, human resources, risk, compliance, vendor management, safety, and/or security in global enterprises, mid-sized, and small companies. The company was formerly known as Fastball Intermediate, Inc. and changed its name to First Advantage Corporation in March 2021. First Advantage Corporation was founded in 2002 and is based in Atlanta, Georgia.