Financial Analysis: Copart (CPRT) and Its Competitors

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

Earnings and Valuation

This table compares Copart and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Copart $1.45 billion $394.22 million 43.11
Copart Competitors $8.01 billion $220.23 million 12.62

Copart’s competitors have higher revenue, but lower earnings than Copart. Copart is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Copart and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Copart 20.95% 30.94% 17.89%
Copart Competitors 3.56% 23.12% 4.09%

Insider and Institutional Ownership

81.4% of Copart shares are held by institutional investors. Comparatively, 59.5% of shares of all “Automotive dealers & gasoline service stations” companies are held by institutional investors. 16.4% of Copart shares are held by insiders. Comparatively, 17.8% of shares of all “Automotive dealers & gasoline service stations” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Copart has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Copart’s competitors have a beta of 10.08, suggesting that their average share price is 908% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Copart and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Copart 0 5 6 0 2.55
Copart Competitors 119 635 686 30 2.43

Copart currently has a consensus price target of $49.43, indicating a potential downside of 11.12%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 16.07%. Given Copart’s competitors higher possible upside, analysts plainly believe Copart has less favorable growth aspects than its competitors.

Summary

Copart beats its competitors on 8 of the 13 factors compared.

Copart Company Profile

Copart, Inc. provides online auctions and vehicle remarketing services. It offers a range of services for processing and selling vehicles over the Internet through its Virtual Bidding Third Generation Internet auction-style sales technology to vehicle sellers, insurance companies, banks and finance companies, charities, and fleet operators and dealers, as well as for individual owners. The company's services include online seller access, salvage estimation, estimating, end-of-life vehicle processing, virtual insured exchange, transportation, vehicle inspection stations, on-demand reporting, motor vehicle regulatory agency processing, flexible vehicle processing programs, buy it now, member network, sales process, and dealer services. Its services also comprise services to sell vehicles through CashForCars.com; and U-Pull-It service that allows buyer to remove valuable parts, and sell the remaining parts and car body. The company sells its products principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters, as well as to the general public. It operates in the United States, Canada, the United Kingdom, the United Arab Emirates, Oman, Bahrain, Germany, Brazil, the Republic of Ireland, Spain, and India. Copart, Inc. was founded in 1982 and is headquartered in Dallas, Texas.

Receive News & Ratings for Copart Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Copart and related companies with MarketBeat.com's FREE daily email newsletter.



Leave a Reply