SHIFT vs Carvana Which Outperforms?

SHIFT and Carvana are two major players in the online automotive retail market, offering customers a convenient and streamlined way to buy and sell cars. Both companies have experienced significant growth in recent years, as more consumers turn to online platforms for their car shopping needs. However, there are key differences between the two companies in terms of their business models, customer base, and financial performance. In this comparison, we will dive into the stocks of SHIFT and Carvana to analyze their potential for investors.

SHIFT or Carvana?

When comparing SHIFT and Carvana, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between SHIFT and Carvana.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. SHIFT has a dividend yield of -%, while Carvana has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. SHIFT reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Carvana reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with SHIFT P/E ratio at 54.34 and Carvana's P/E ratio at 1830.63. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. SHIFT P/B ratio is 8.97 while Carvana's P/B ratio is 50.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, SHIFT has seen a 5-year revenue growth of 5.09%, while Carvana's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with SHIFT's ROE at 17.69% and Carvana's ROE at 4.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ¥17365.00 for SHIFT and $246.68 for Carvana. Over the past year, SHIFT's prices ranged from ¥8594.00 to ¥36090.00, with a yearly change of 319.94%. Carvana's prices fluctuated between $37.47 and $268.34, with a yearly change of 616.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.