CarLotz (LOTZ) & Its Peers Critical Review

CarLotz (NASDAQ: LOTZ) is one of 29 publicly-traded companies in the “Automotive dealers & gasoline service stations” industry, but how does it weigh in compared to its rivals? We will compare CarLotz to related businesses based on the strength of its earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Risk & Volatility

CarLotz has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, CarLotz’s rivals have a beta of 4.08, meaning that their average share price is 308% more volatile than the S&P 500.

Profitability

This table compares CarLotz and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CarLotz N/A -31.76% -6.15%
CarLotz Competitors 3.54% 134.64% 5.39%

Institutional & Insider Ownership

28.3% of CarLotz shares are held by institutional investors. Comparatively, 55.0% of shares of all “Automotive dealers & gasoline service stations” companies are held by institutional investors. 37.2% of CarLotz shares are held by insiders. Comparatively, 18.4% of shares of all “Automotive dealers & gasoline service stations” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares CarLotz and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CarLotz $118.63 million -$3.54 million -2.64
CarLotz Competitors $6.49 billion $175.08 million 4.91

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

Analyst Recommendations

This is a summary of current ratings and target prices for CarLotz and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CarLotz 0 0 2 0 3.00
CarLotz Competitors 205 1089 1338 46 2.46

CarLotz presently has a consensus price target of $16.00, suggesting a potential upside of 167.11%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 8.05%. Given CarLotz’s stronger consensus rating and higher probable upside, equities research analysts plainly believe CarLotz is more favorable than its rivals.

Summary

CarLotz rivals beat CarLotz on 9 of the 13 factors compared.

About CarLotz

CarLotz, Inc. operates as a consignment-to-retail used vehicle marketplace that provides its corporate vehicle sourcing partners and retail sellers of used vehicles. The company serves corporate vehicle sourcing partners, which include fleet leasing companies, rental car companies, banks, captive finance companies, third-party remarketers, wholesalers, companies that manage their own fleets, and original equipment manufacturers; retail sellers of used vehicles to individuals; and retail customers. It operates ten hubs throughout the Mid-Atlantic, Southeast, Southcentral, Midwest, and West Coast regions of the United States. The company was founded in 2011 and is headquartered in Richmond, Virginia.

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