Financial Comparison: PSQ (NYSE:PSQH) and Carvana (NYSE:CVNA)

PSQ (NYSE:PSQH) and Carvana (NYSE:CVNA) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Volatility and Risk

PSQ has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Carvana has a beta of 3.55, suggesting that its share price is 255% more volatile than the S&P 500.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PSQ	$18.22 million	1.66	-$36.61 million	($0.81)	-0.76
Carvana	$20.32 billion	3.47	$1.41 billion	$1.64	39.23

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

Insider & Institutional Ownership

17.3% of PSQ shares are owned by institutional investors. Comparatively, 56.7% of Carvana shares are owned by institutional investors. 22.1% of PSQ shares are owned by insiders. Comparatively, 15.2% of Carvana shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PSQ	-143.15%	-217.16%	-53.86%
Carvana	6.40%	41.46%	12.48%

Analyst Ratings

This is a breakdown of current ratings and price targets for PSQ and Carvana, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PSQ	1	0	1	0	2.00
Carvana	0	6	17	1	2.79

PSQ currently has a consensus target price of $3.50, indicating a potential upside of 465.06%. Carvana has a consensus target price of $93.14, indicating a potential upside of 44.75%. Given PSQ’s higher probable upside, research analysts plainly believe PSQ is more favorable than Carvana.

Summary

Carvana beats PSQ on 13 of the 15 factors compared between the two stocks.

About PSQ

PSQ Holdings, Inc., together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc. is headquartered in West Palm Beach, 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.