Critical Review: Lazydays (NASDAQ:GORV) and America’s Car-Mart (NASDAQ:CRMT)

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

Earnings and Valuation

This table compares Lazydays and America’s Car-Mart”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lazydays	$920.77 million	0.01	-$110.27 million	($13.85)	-0.04
America’s Car-Mart	$1.36 billion	0.25	-$31.39 million	($0.82)	-51.05

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lazydays	-20.83%	-62.37%	-8.53%
America’s Car-Mart	-0.29%	-2.26%	-0.73%

Volatility & Risk

Lazydays has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, America’s Car-Mart has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Lazydays and America’s Car-Mart, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lazydays	0	2	0	0	2.00
America’s Car-Mart	1	1	0	1	2.33

Lazydays presently has a consensus price target of $2.00, indicating a potential upside of 292.16%. America’s Car-Mart has a consensus price target of $50.00, indicating a potential upside of 19.45%. Given Lazydays’ higher possible upside, equities analysts clearly believe Lazydays is more favorable than America’s Car-Mart.

Institutional and Insider Ownership

89.7% of Lazydays shares are held by institutional investors. Comparatively, 89.1% of America’s Car-Mart shares are held by institutional investors. 0.5% of Lazydays shares are held by insiders. Comparatively, 19.6% of America’s Car-Mart shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

America’s Car-Mart beats Lazydays on 10 of the 14 factors compared between the two stocks.

About Lazydays

Lazydays Holdings, Inc. operates recreational vehicle (RV) dealerships under the Lazydays name in the United States. The company offers RV sales, RV-repair and services, financing and insurance products, third-party protection plans, and after-market parts and accessories. It also operates the Lazydays RV resort at Tampa, Florida. The company was founded in 1976 and is based in Tampa, Florida.

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.