Critical Comparison: Montague International (OTCMKTS:MIHL) and Carvana (NYSE:CVNA)

Montague International (OTCMKTS:MIHL) and Carvana (NYSE:CVNA) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Institutional & Insider Ownership

56.7% of Carvana shares are owned by institutional investors. 17.1% of Carvana shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Montague International and Carvana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Montague International	0	0	0	0	0.00
Carvana	0	6	13	1	2.75

Carvana has a consensus target price of $404.94, suggesting a potential upside of 12.54%. Given Carvana’s stronger consensus rating and higher probable upside, analysts clearly believe Carvana is more favorable than Montague International.

Valuation and Earnings

This table compares Montague International and Carvana”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Montague International	N/A	N/A	N/A	N/A	N/A
Carvana	$13.67 billion	5.66	$210.00 million	$3.99	90.18

Carvana has higher revenue and earnings than Montague International.

Risk and Volatility

Montague International has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Carvana has a beta of 3.55, indicating that its stock price is 255% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Montague International	N/A	N/A	N/A
Carvana	3.46%	40.57%	6.60%

Summary

Carvana beats Montague International on 11 of the 11 factors compared between the two stocks.

About Montague International

Montague International Holding Ltd., through its subsidiaries, engages in the businesses of financial services, energy, mining, entertainment, healthcare, consumer, industrial trade, and business development in the European Union, the Russian Federation, Latin America, and the United States. It offers investment advisory services and other investment solutions to corporate clients and high net worth individuals. The company also provides securities brokerage/dealership services; owns and operates a gold mining project; and designs, manufactures, and installs modular oil refining plants. In addition, it engages in real estate development business, as well as owns and operates entertainment centers, such as clubs. Montague International Holding Ltd. was formerly known as High Tech Crime Solutions Inc. and changed its name to Montague International Holding Ltd. in July 2012. The company was incorporated in 2009 and is based in Philadelphia, Pennsylvania. Montague International Holding Ltd. is a former subsidiary of LIGATT Security International, Inc.

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.