Head-To-Head Analysis: OneWater Marine (NASDAQ:ONEW) & America’s Car-Mart (NASDAQ:CRMT)

America’s Car-Mart (NASDAQ:CRMT) and OneWater Marine (NASDAQ:ONEW) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their risk, profitability, dividends, institutional ownership, valuation, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for America’s Car-Mart and OneWater Marine, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
America’s Car-Mart	1	2	0	0	1.67
OneWater Marine	1	2	2	0	2.20

America’s Car-Mart presently has a consensus target price of $14.00, indicating a potential upside of 636.84%. OneWater Marine has a consensus target price of $13.33, indicating a potential upside of 24.26%. Given America’s Car-Mart’s higher possible upside, equities analysts clearly believe America’s Car-Mart is more favorable than OneWater Marine.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
America’s Car-Mart	$1.28 billion	0.01	-$139.11 million	($23.80)	-0.08
OneWater Marine	$1.87 billion	0.10	-$114.58 million	($7.46)	-1.44

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

Insider & Institutional Ownership

89.1% of America’s Car-Mart shares are held by institutional investors. Comparatively, 94.3% of OneWater Marine shares are held by institutional investors. 18.4% of America’s Car-Mart shares are held by company insiders. Comparatively, 19.5% of OneWater Marine shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
America’s Car-Mart	-18.21%	-15.19%	-4.73%
OneWater Marine	-6.72%	2.20%	0.44%

Volatility and Risk

America’s Car-Mart has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, OneWater Marine has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.

Summary

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

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.

About OneWater Marine

OneWater Marine Inc. operates as a recreational boat retailer in the United States. The company offers new and pre-owned recreational boats and yachts, as well as related marine products, such as parts and accessories. It provides boat repair and maintenance services. In addition, the company arranges boat financing and insurance; and other ancillary services, including indoor and outdoor storage, and marina services. Further, it provides rental of boats and personal watercraft services. OneWater Marine Inc. was founded in 2014 and is headquartered in Buford, Georgia.