Head to Head Analysis: America’s Car-Mart (CRMT) versus Its Rivals

America’s Car-Mart (NASDAQ: CRMT) is one of 20 publicly-traded companies in the “Automotive dealers & gasoline service stations” industry, but how does it compare to its rivals? We will compare America’s Car-Mart to similar companies based on the strength of its dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Profitability

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

Net Margins Return on Equity Return on Assets
America’s Car-Mart 5.30% 9.91% 5.24%
America’s Car-Mart Competitors 3.22% 33.52% 3.60%

Volatility and Risk

America’s Car-Mart has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, America’s Car-Mart’s rivals have a beta of 9.98, suggesting that their average share price is 898% more volatile than the S&P 500.

Insider and Institutional Ownership

82.2% of America’s Car-Mart shares are held by institutional investors. Comparatively, 62.1% of shares of all “Automotive dealers & gasoline service stations” companies are held by institutional investors. 11.7% of America’s Car-Mart shares are held by company insiders. Comparatively, 16.5% of shares of all “Automotive dealers & gasoline service stations” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares America’s Car-Mart and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
America’s Car-Mart $587.75 million $20.20 million 20.16
America’s Car-Mart Competitors $8.01 billion $220.42 million 12.15

America’s Car-Mart’s rivals have higher revenue and earnings than America’s Car-Mart. America’s Car-Mart is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and price targets for America’s Car-Mart and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America’s Car-Mart 0 2 0 0 2.00
America’s Car-Mart Competitors 115 620 667 29 2.43

America’s Car-Mart presently has a consensus target price of $47.50, indicating a potential downside of 7.59%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 16.43%. Given America’s Car-Mart’s rivals stronger consensus rating and higher probable upside, analysts clearly believe America’s Car-Mart has less favorable growth aspects than its rivals.

Summary

America’s Car-Mart rivals beat America’s Car-Mart on 9 of the 13 factors compared.

About America’s Car-Mart

America's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company primarily sells older model used vehicles and provides financing for its customers. As of April 30, 2017, it operated 140 dealerships in 11 states in the South-Central United States. America's Car-Mart, Inc. was founded in 1981 and is headquartered in Bentonville, Arkansas.

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