Analyzing Carvana (NYSE:CVNA) & D-MARKET Electronic Services & Trading (NASDAQ:HEPS)

D-MARKET Electronic Services & Trading (NASDAQ:HEPS) and Carvana (NYSE:CVNA) are both retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

40.5% of D-MARKET Electronic Services & Trading shares are held by institutional investors. Comparatively, 56.7% of Carvana shares are held by institutional investors. 36.3% of D-MARKET Electronic Services & Trading shares are held by insiders. Comparatively, 17.1% of Carvana shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares D-MARKET Electronic Services & Trading and Carvana”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D-MARKET Electronic Services & Trading	$2.15 billion	0.44	-$144.76 million	($0.43)	-6.16
Carvana	$20.32 billion	3.18	$1.41 billion	$8.04	36.70

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

Analyst Ratings

This is a summary of current ratings and recommmendations for D-MARKET Electronic Services & Trading and Carvana, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-MARKET Electronic Services & Trading	1	2	0	0	1.67
Carvana	0	5	19	1	2.84

D-MARKET Electronic Services & Trading currently has a consensus price target of $3.07, indicating a potential upside of 15.85%. Carvana has a consensus price target of $440.59, indicating a potential upside of 49.30%. Given Carvana’s stronger consensus rating and higher possible upside, analysts plainly believe Carvana is more favorable than D-MARKET Electronic Services & Trading.

Risk & Volatility

D-MARKET Electronic Services & Trading has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500. Comparatively, Carvana has a beta of 3.6, meaning that its stock price is 260% more volatile than the S&P 500.

Profitability

This table compares D-MARKET Electronic Services & Trading and Carvana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
D-MARKET Electronic Services & Trading	-8.46%	-225.04%	-16.61%
Carvana	6.92%	50.96%	13.63%

Summary

Carvana beats D-MARKET Electronic Services & Trading on 14 of the 15 factors compared between the two stocks.

About D-MARKET Electronic Services & Trading

D-Market Elektronik Hizmetler ve Ticaret A.S. operates e-commerce platforms in Turkey. The company operates www.hepsiburada.com, a retail website that provides its retail customers a range of merchandise, including electronics and non-electronics products, such as books, sports, toys, kids and baby products, cosmetics, furniture, etc. It also offers Hepsiburada Market, an app-in-app initiative and on-demand delivery service that delivers groceries and water; HepsiJet that provides last-mile delivery services; HepsiLojistik, which offers storage and fulfillment services; HepsiMat, an offline network of pick-up and drop-off point; HepsiAd that provides advertising service; HepsiGlobal for discovering and purchasing products from international merchants online; Hepsipay, which offers an e-money and payment services; and Hepsiburada Seyahat for buying airline tickets online. The company was incorporated in 2000 and is headquartered in Istanbul, Turkey.

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.