Head to Head Analysis: Carvana (NYSE:CVNA) & Monro Muffler Brake (NASDAQ:MNRO)

Monro Muffler Brake (NASDAQ:MNRO) and Carvana (NYSE:CVNA) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current ratings for Monro Muffler Brake and Carvana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Monro Muffler Brake	1	2	2	0	2.20
Carvana	0	8	16	1	2.72

Monro Muffler Brake currently has a consensus price target of $24.33, suggesting a potential upside of 78.20%. Carvana has a consensus price target of $83.13, suggesting a potential upside of 38.16%. Given Monro Muffler Brake’s higher probable upside, equities analysts plainly believe Monro Muffler Brake is more favorable than Carvana.

Valuation and Earnings

This table compares Monro Muffler Brake and Carvana”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Monro Muffler Brake	$1.16 billion	0.37	$2.17 million	$0.22	62.07
Carvana	$25.06 billion	2.64	$1.41 billion	$1.81	33.24

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

Profitability

This table compares Monro Muffler Brake and Carvana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Monro Muffler Brake	0.71%	0.80%	0.30%
Carvana	6.26%	37.06%	12.21%

Volatility & Risk

Monro Muffler Brake has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, Carvana has a beta of 3.55, indicating that its share price is 255% more volatile than the S&P 500.

Insider & Institutional Ownership

56.7% of Carvana shares are held by institutional investors. 5.7% of Monro Muffler Brake shares are held by company insiders. Comparatively, 15.2% of Carvana shares are held by company 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 Monro Muffler Brake on 13 of the 15 factors compared between the two stocks.

About Monro Muffler Brake

Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers replacement tires and tire related services, automotive undercar repair services, and routine maintenance services primarily to passenger cars, light trucks, and vans. The company also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. In addition, it operates stores under the brand names of Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse. The company was founded in 1957 and is headquartered in Rochester, New York.

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.