Head-To-Head Contrast: Carvana (NYSE:CVNA) and eBay (NASDAQ:EBAY)

Carvana (NYSE:CVNA) and eBay (NASDAQ:EBAY) are both large-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Earnings & Valuation

This table compares Carvana and eBay”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carvana	$20.32 billion	3.36	$1.41 billion	$1.64	37.99
eBay	$11.10 billion	4.32	$2.03 billion	$4.41	24.50

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

Analyst Recommendations

This is a summary of recent recommendations for Carvana and eBay, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carvana	0	5	17	2	2.88
eBay	1	19	13	0	2.36

Carvana presently has a consensus target price of $93.14, indicating a potential upside of 49.48%. eBay has a consensus target price of $108.61, indicating a potential upside of 0.54%. Given Carvana’s stronger consensus rating and higher probable upside, analysts clearly believe Carvana is more favorable than eBay.

Risk and Volatility

Carvana has a beta of 3.45, indicating that its stock price is 245% more volatile than the S&P 500. Comparatively, eBay has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Profitability

This table compares Carvana and eBay’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carvana	6.40%	41.46%	12.48%
eBay	17.58%	46.11%	11.97%

Insider & Institutional Ownership

56.7% of Carvana shares are owned by institutional investors. Comparatively, 87.5% of eBay shares are owned by institutional investors. 15.2% of Carvana shares are owned by insiders. Comparatively, 0.7% of eBay shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Carvana beats eBay on 9 of the 15 factors compared between the two stocks.

About Carvana

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company also operates auction sites. The company was founded in 2012 and is based in Tempe, Arizona.

About eBay

eBay Inc., together with its subsidiaries, operates marketplace platforms that connect buyers and sellers in the United States, the United Kingdom, China, Germany, and internationally. The company’s marketplace platform includes its online marketplace at ebay.com, off-platform businesses, and the eBay suite of mobile apps. Its platforms enable users to list, sell, and buy various products. The company was founded in 1995 and is headquartered in San Jose, California.