Critical Survey: SunCar Technology Group (NASDAQ:SDA) and Mister Car Wash (NYSE:MCW)

SunCar Technology Group (NASDAQ:SDA) and Mister Car Wash (NYSE:MCW) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Risk and Volatility

SunCar Technology Group has a beta of -0.15, indicating that its share price is 115% less volatile than the S&P 500. Comparatively, Mister Car Wash has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500.

Insider & Institutional Ownership

0.3% of SunCar Technology Group shares are owned by institutional investors. 22.2% of SunCar Technology Group shares are owned by company insiders. Comparatively, 70.0% of Mister Car Wash shares are owned by company 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.

Profitability

This table compares SunCar Technology Group and Mister Car Wash’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SunCar Technology Group	N/A	N/A	N/A
Mister Car Wash	8.04%	9.38%	2.94%

Earnings & Valuation

This table compares SunCar Technology Group and Mister Car Wash’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SunCar Technology Group	$363.75 million	1.97	-$26.91 million	N/A	N/A
Mister Car Wash	$927.07 million	2.41	$80.13 million	$0.23	30.43

Mister Car Wash has higher revenue and earnings than SunCar Technology Group.

Analyst Recommendations

This is a summary of current recommendations for SunCar Technology Group and Mister Car Wash, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SunCar Technology Group	0	0	0	0	N/A
Mister Car Wash	1	1	7	0	2.67

Mister Car Wash has a consensus price target of $9.56, indicating a potential upside of 36.61%. Given Mister Car Wash’s higher probable upside, analysts clearly believe Mister Car Wash is more favorable than SunCar Technology Group.

Summary

Mister Car Wash beats SunCar Technology Group on 10 of the 11 factors compared between the two stocks.

About SunCar Technology Group

SunCar Technology Group Inc., through its subsidiaries, provides digitalized automotive after-sales service and online insurance intermediation services in the People's Republic of China. It operates through three segments: Insurance Intermediation Business; Automotive After-Sales Business; and Technology Business. The company offers customized after-sale services to banking, insurance companies, and other customer types; and auto mobile insurance comprising statutory automobile liability insurance and commercial automobile insurance. In addition, it provides auto insurance SaaS products and other technical services. The company is based in Shanghai, China.

About Mister Car Wash

Mister Car Wash, Inc., together with its subsidiaries, provides conveyorized car wash services in the United States. It offers express exterior and interior cleaning services. The company serves individual retail and corporate customers. The company was formerly known as Hotshine Holdings, Inc. and changed its name to Mister Car Wash, Inc. in March 2021. Mister Car Wash, Inc. was founded in 1996 and is headquartered in Tucson, Arizona.