Critical Comparison: LMP Automotive (OTCMKTS:LMPX) versus Lazydays (NASDAQ:GORV)

LMP Automotive (OTCMKTS:LMPX) and Lazydays (NASDAQ:GORV) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Institutional & Insider Ownership

89.7% of Lazydays shares are held by institutional investors. 38.7% of LMP Automotive shares are held by insiders. Comparatively, 61.5% of Lazydays shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares LMP Automotive and Lazydays’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LMP Automotive	$318.49 million	0.01	N/A	N/A	N/A
Lazydays	$987.99 million	0.03	-$110.27 million	($9.62)	-0.20

LMP Automotive has higher earnings, but lower revenue than Lazydays.

Volatility & Risk

LMP Automotive has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, Lazydays has a beta of 2.02, indicating that its stock price is 102% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for LMP Automotive and Lazydays, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LMP Automotive	0	0	0	0	N/A
Lazydays	0	2	0	0	2.00

Lazydays has a consensus price target of $2.00, suggesting a potential upside of 5.26%. Given Lazydays’ higher probable upside, analysts plainly believe Lazydays is more favorable than LMP Automotive.

Profitability

This table compares LMP Automotive and Lazydays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LMP Automotive	N/A	N/A	N/A
Lazydays	-12.48%	-16.47%	-3.86%

Summary

Lazydays beats LMP Automotive on 6 of the 9 factors compared between the two stocks.

About LMP Automotive

LMP Automotive Holdings, Inc., through its subsidiaries, buys, sells, rents and subscribes for, and obtains financing for automobiles online and in person in the United States. It primarily buys pre-owned automobiles primarily through auctions or directly from other automobile dealers, as well as new automobiles from manufacturers and distributors at fleet rates. The company was incorporated in 2017 and is headquartered in Fort Lauderdale, Florida.

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.