Head-To-Head Analysis: Carvana (NYSE:CVNA) versus Dingdong (Cayman) (NYSE:DDL)

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Dingdong (Cayman) and Carvana, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dingdong (Cayman)	1	1	0	0	1.50
Carvana	0	6	19	0	2.76

Carvana has a consensus price target of $468.59, indicating a potential downside of 2.98%. Given Carvana’s stronger consensus rating and higher probable upside, analysts clearly believe Carvana is more favorable than Dingdong (Cayman).

Insider & Institutional Ownership

24.7% of Dingdong (Cayman) shares are held by institutional investors. Comparatively, 56.7% of Carvana shares are held by institutional investors. 29.8% of Dingdong (Cayman) shares are held by company insiders. Comparatively, 17.1% of Carvana shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Dingdong (Cayman) and Carvana”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dingdong (Cayman)	$3.21 billion	0.21	$40.43 million	$0.17	16.68
Carvana	$13.67 billion	7.68	$210.00 million	$4.38	110.27

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

Profitability

This table compares Dingdong (Cayman) and Carvana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dingdong (Cayman)	1.17%	31.21%	4.04%
Carvana	3.44%	30.62%	6.88%

Risk and Volatility

Dingdong (Cayman) has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Carvana has a beta of 3.54, meaning that its stock price is 254% more volatile than the S&P 500.

Summary

Carvana beats Dingdong (Cayman) on 12 of the 14 factors compared between the two stocks.

About Dingdong (Cayman)

Dingdong (Cayman) Limited operates an e-commerce company in China. The company offers fresh groceries, including vegetables, meat and eggs, fruits, and seafood; prepared food, and other food products, such as baked goods, dairy, seasonings, beverages, instant food, oil, and snacks. It offers its products through traditional offline, as well as online channels through Dingdong Fresh app, mini-programs, and third-party platforms. Dingdong (Cayman) Limited was founded in 2017 and is headquartered in Shanghai, China.

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.