Critical Comparison: Lazydays (NASDAQ:GORV) and OPENLANE (NYSE:KAR)

Lazydays (NASDAQ:GORV) and OPENLANE (NYSE:KAR) are both small-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Insider and Institutional Ownership

89.7% of Lazydays shares are owned by institutional investors. Comparatively, 99.8% of OPENLANE shares are owned by institutional investors. 61.5% of Lazydays shares are owned by company insiders. Comparatively, 2.3% of OPENLANE shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Lazydays and OPENLANE, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lazydays	0	2	0	0	2.00
OPENLANE	0	2	3	0	2.60

Lazydays currently has a consensus price target of $2.00, indicating a potential upside of 36.05%. OPENLANE has a consensus price target of $19.60, indicating a potential upside of 16.88%. Given Lazydays’ higher possible upside, research analysts clearly believe Lazydays is more favorable than OPENLANE.

Volatility & Risk

Lazydays has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, OPENLANE has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lazydays and OPENLANE”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lazydays	$987.99 million	0.02	-$110.27 million	($9.62)	-0.15
OPENLANE	$1.66 billion	1.10	-$154.10 million	($1.79)	-9.37

Lazydays has higher earnings, but lower revenue than OPENLANE. OPENLANE is trading at a lower price-to-earnings ratio than Lazydays, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lazydays and OPENLANE’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lazydays	-18.19%	-35.04%	-6.55%
OPENLANE	3.39%	7.85%	2.20%

Summary

OPENLANE beats Lazydays on 9 of the 14 factors compared between the two stocks.

About Lazydays

Lazydays Holdings, Inc. operates recreational vehicle (RV) dealerships under the Lazydays name in the United States. The company offers RV sales, RV-repair and services, financing and insurance products, third-party protection plans, and after-market parts and accessories. It also operates the Lazydays RV resort at Tampa, Florida. The company was founded in 1976 and is based in Tampa, Florida.

About OPENLANE

OPENLANE, Inc., together with its subsidiaries, operates as a digital marketplace for used vehicles, which connects sellers and buyers in North America, Europe, the Philippines, and Uruguay. The company operates through two segments, Marketplace and Finance. The Marketplace segment offers digital marketplace services for buying and selling used vehicles. Its digital marketplaces include OPENLANE, a mobile-app enabled solutions that allows dealers to sell and source inventory in the United States. This segment also provides value-added ancillary services, including inbound and outbound transportation logistics, reconditioning, vehicle inspection and certification, titling, administrative, and collateral recovery services. This segment sells its products and services through vehicle manufacturers, fleet companies, rental car companies, finance companies, and others. The Finance segment offers floorplan financing, a short-term inventory-secured financing to independent used vehicle dealers. The company serves commercial customers and dealer customers. The company was formerly known as KAR Auction Services, Inc. and changed its name to OPENLANE, Inc. in May 2023. OPENLANE, Inc. was incorporated in 2006 and is headquartered in Carmel, Indiana.