Comparing ACV Auctions (NASDAQ:ACVA) and Lookers (OTCMKTS:LKKRF)

Lookers (OTCMKTS:LKKRF) and ACV Auctions (NASDAQ:ACVA) are both consumer cyclical companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Institutional & Insider Ownership

88.6% of ACV Auctions shares are held by institutional investors. 8.5% of ACV Auctions shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lookers and ACV Auctions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lookers	0	0	0	0	N/A
ACV Auctions	0	2	6	0	2.75

ACV Auctions has a consensus target price of $22.00, suggesting a potential upside of 24.22%. Given ACV Auctions’ higher possible upside, analysts plainly believe ACV Auctions is more favorable than Lookers.

Earnings & Valuation

This table compares Lookers and ACV Auctions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lookers	N/A	N/A	N/A	N/A	N/A
ACV Auctions	$543.70 million	5.43	-$75.26 million	($0.48)	-36.90

Lookers has higher earnings, but lower revenue than ACV Auctions.

Profitability

This table compares Lookers and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lookers	N/A	N/A	N/A
ACV Auctions	-14.53%	-13.20%	-6.17%

Summary

ACV Auctions beats Lookers on 5 of the 8 factors compared between the two stocks.

About Lookers

Lookers plc engages in the sale, hire, and maintenance of motor vehicles and motorcycles in the United Kingdom and Ireland. The company engages in the sale of new and used cars and light commercial vehicles; vehicle rental; and leasing fleet management. It operates various franchised dealerships and online platforms. The company is also involved in the sale of tires, oils, parts, and accessories. In addition, it offers credit broking services; property management services; and insurance products, as well as sale and maintenance of vehicles, and distribution of spare parts. The company was founded in 1908 and is headquartered in Altrincham, the United Kingdom.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company’s marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green’s seller assurance service for against claims related to defects in the vehicle. It also provides remarketing centers, which offers value-added services, such as vehicle reconditioning and storage for dealers and commercial partners. In addition, the company offers data services, including True360 report, which provides cosmetic and structural vehicle assessments integrated into vehicle history reports for dealer to make wholesale and retail transaction decisions on and off the marketplace; ACV market report provides transaction data and condition reports for comparable used vehicles, including pricing data from third-party sources and allows dealers to determine pricing and valuation strategies for used vehicles; and ACV MAX inventory management software enables dealers to manage their inventory and set pricing while turning vehicles. Further, it provides data and technology through inspection, such as condition reports, virtual lift solutions, apex device, and vehicle intelligence platform; and marketplace enablement, comprising MyACV application, private marketplaces, operations automation, live appraisals, and programmatic buying service. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.