Head to Head Contrast: Lazydays (NASDAQ:GORV) and CarMax (NYSE:KMX)

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Lazydays and CarMax, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lazydays	0	2	0	0	2.00
CarMax	2	5	6	0	2.31

Lazydays currently has a consensus target price of $2.00, indicating a potential upside of 37.93%. CarMax has a consensus target price of $76.25, indicating a potential upside of 1.40%. Given Lazydays’ higher probable upside, equities research analysts clearly believe Lazydays is more favorable than CarMax.

Profitability

This table compares Lazydays and CarMax’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%
CarMax	1.55%	6.64%	1.48%

Institutional & Insider Ownership

89.7% of Lazydays shares are held by institutional investors. 61.5% of Lazydays shares are held by insiders. Comparatively, 1.7% of CarMax shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Lazydays and CarMax”s top-line revenue, earnings per share (EPS) 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)	-0.15
CarMax	$25.96 billion	0.45	$479.20 million	$2.56	29.38

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

Volatility & Risk

Lazydays has a beta of 1.99, meaning that its stock price is 99% more volatile than the S&P 500. Comparatively, CarMax has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.

Summary

CarMax beats Lazydays on 10 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 CarMax

CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.