Worksport (NASDAQ:WKSP – Get Free Report) and America’s Car-Mart (NASDAQ:CRMT – Get Free Report) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.
Risk and Volatility
Worksport has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, America’s Car-Mart has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500.
Profitability
This table compares Worksport and America’s Car-Mart’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Worksport | -165.61% | -92.59% | -64.71% |
| America’s Car-Mart | 1.29% | 2.01% | 0.68% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Worksport | $8.48 million | 2.20 | -$16.16 million | ($6.60) | -0.54 |
| America’s Car-Mart | $1.39 billion | 0.25 | $17.93 million | $2.09 | 20.55 |
America’s Car-Mart has higher revenue and earnings than Worksport. Worksport 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.
Institutional & Insider Ownership
16.1% of Worksport shares are owned by institutional investors. Comparatively, 89.1% of America’s Car-Mart shares are owned by institutional investors. 8.0% of Worksport shares are owned by company insiders. Comparatively, 19.6% of America’s Car-Mart shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and price targets for Worksport and America’s Car-Mart, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Worksport | 0 | 0 | 3 | 0 | 3.00 |
| America’s Car-Mart | 0 | 0 | 0 | 1 | 4.00 |
Worksport presently has a consensus target price of $14.00, suggesting a potential upside of 291.06%. America’s Car-Mart has a consensus target price of $50.00, suggesting a potential upside of 16.44%. Given Worksport’s higher probable upside, research analysts clearly believe Worksport is more favorable than America’s Car-Mart.
Summary
America’s Car-Mart beats Worksport on 11 of the 15 factors compared between the two stocks.
About Worksport
Worksport Ltd., through its subsidiary, designs and distributes truck tonneau covers in Canada and the United States. The company offers soft tonneau covers, such as vinyl wrapped tri- and quad-fold tonneau covers; and hard tonneau covers, including tri- and quad-fold aluminum covers. It also offers energy products, such as Worksport SOLIS, a tonneau cover with integrated solar panels; and Worksport COR energy storage system, a modular, portable power station. It serves its products to automotive accessories, consumer electronics, and residential and commercial HVAC system markets. The company also sells its products through wholesalers, private labels, distributors, and online retail channels, including eBay, Amazon, Walmart, and e-commerce platform hosted on Shopify. Worksport Ltd. is based in West Seneca, New York.
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.
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