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

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

Volatility and Risk

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

Profitability

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

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

Institutional and Insider Ownership

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
America’s Car-Mart	$1.36 billion	0.27	-$31.39 million	($0.82)	-54.24
Lazydays	$920.77 million	0.01	-$110.27 million	($13.85)	-0.05

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.

Analyst Ratings

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

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

America’s Car-Mart currently has a consensus target price of $50.00, suggesting a potential upside of 12.41%. Lazydays has a consensus target price of $2.00, suggesting a potential upside of 200.26%. Given Lazydays’ higher possible upside, analysts plainly believe Lazydays is more favorable than America’s Car-Mart.

Summary

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

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.

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.