Contrasting America’s Car-Mart (NASDAQ:CRMT) & Brand House Collective (NASDAQ:TBHC)

Brand House Collective (NASDAQ:TBHC) and America’s Car-Mart (NASDAQ:CRMT) are both small-cap consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Brand House Collective and America’s Car-Mart, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brand House Collective	1	0	0	0	1.00
America’s Car-Mart	1	2	0	0	1.67

America’s Car-Mart has a consensus target price of $14.00, indicating a potential upside of 483.33%. Given America’s Car-Mart’s stronger consensus rating and higher possible upside, analysts clearly believe America’s Car-Mart is more favorable than Brand House Collective.

Earnings and Valuation

This table compares Brand House Collective and America’s Car-Mart”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brand House Collective	$409.65 million	0.05	-$23.13 million	($1.09)	-0.86
America’s Car-Mart	$1.28 billion	0.02	-$139.11 million	($16.21)	-0.15

Brand House Collective has higher earnings, but lower revenue than America’s Car-Mart. Brand House Collective is trading at a lower price-to-earnings ratio than America’s Car-Mart, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Brand House Collective and America’s Car-Mart’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brand House Collective	-6.79%	N/A	-15.05%
America’s Car-Mart	-10.50%	-4.09%	-1.31%

Institutional and Insider Ownership

15.4% of Brand House Collective shares are owned by institutional investors. Comparatively, 89.1% of America’s Car-Mart shares are owned by institutional investors. 3.0% of Brand House Collective shares are owned by insiders. Comparatively, 18.4% of America’s Car-Mart shares are owned 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.

Volatility & Risk

Brand House Collective has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500. Comparatively, America’s Car-Mart has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Summary

America’s Car-Mart beats Brand House Collective on 7 of the 13 factors compared between the two stocks.

About Brand House Collective

Kirkland’s, Inc. operates as a specialty retailer of home décor and furnishings in the United States. Its stores provide various merchandise, including holiday décor, furniture, textiles, ornamental wall décor, decorative accessories, art, mirrors, home fragrance, lighting, floral, housewares, outdoor, and gifts. The company operates its stores under the Kirkland’s, Kirkland’s Home, Kirkland’s Home Outlet, Kirkland’s Outlet, and Kirkland Collection names. It also operates an e-commerce website, kirklands.com. The company was founded in 1966 and is headquartered in Brentwood, Tennessee.

About America’s Car-Mart

America’s Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer for the used car market in the United States. It primarily sells older model used vehicles and provides financing for its customers. The company was founded in 1981 and is headquartered in Rogers, Arkansas.