Comparing Worksport (NASDAQ:WKSP) & America’s Car-Mart (NASDAQ:CRMT)

Worksport (NASDAQ:WKSP) and America’s Car-Mart (NASDAQ:CRMT) are both small-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations 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, indicating a potential upside of 377.82%. America’s Car-Mart has a consensus target price of $50.00, indicating a potential upside of 12.66%. Given Worksport’s higher probable upside, research analysts plainly believe Worksport is more favorable than America’s Car-Mart.

Institutional and Insider Ownership

16.1% of Worksport shares are held by institutional investors. Comparatively, 89.1% of America’s Car-Mart shares are held by institutional investors. 8.0% of Worksport shares are held by insiders. Comparatively, 19.6% of America’s Car-Mart shares are held 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.

Earnings & Valuation

This table compares Worksport and America’s Car-Mart”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worksport	$8.48 million	2.29	-$16.16 million	($6.60)	-0.44
America’s Car-Mart	$1.39 billion	0.27	$17.93 million	$2.09	21.23

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.

Risk & Volatility

Worksport has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500. Comparatively, America’s Car-Mart has a beta of 1.32, meaning that its stock 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	-134.19%	-93.40%	-65.91%
America’s Car-Mart	1.29%	2.01%	0.68%

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.