Reviewing Lazydays (NASDAQ:GORV) and Carvana (NYSE:CVNA)

Lazydays (NASDAQ:GORV) and Carvana (NYSE:CVNA) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for Lazydays and Carvana, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lazydays	0	2	0	0	2.00
Carvana	1	10	8	0	2.37

Lazydays presently has a consensus target price of $2.00, suggesting a potential upside of 60.00%. Carvana has a consensus target price of $182.29, suggesting a potential downside of 8.94%. Given Lazydays’ higher possible upside, equities research analysts clearly believe Lazydays is more favorable than Carvana.

Profitability

This table compares Lazydays and Carvana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lazydays	-18.19%	-35.04%	-6.55%
Carvana	6.12%	N/A	-0.79%

Insider & Institutional Ownership

89.7% of Lazydays shares are held by institutional investors. Comparatively, 56.7% of Carvana shares are held by institutional investors. 61.5% of Lazydays shares are held by company insiders. Comparatively, 17.1% of Carvana shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Lazydays and Carvana”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lazydays	$987.99 million	0.02	-$110.27 million	($9.62)	-0.13
Carvana	$11.67 billion	3.48	$450.00 million	$2.28	87.80

Carvana has higher revenue and earnings than Lazydays. Lazydays is trading at a lower price-to-earnings ratio than Carvana, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Lazydays has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500. Comparatively, Carvana has a beta of 3.44, suggesting that its share price is 244% more volatile than the S&P 500.

Summary

Carvana beats Lazydays on 11 of the 14 factors compared between the two stocks.

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.

About Carvana

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company also operates auction sites. The company was founded in 2012 and is based in Tempe, Arizona.