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How Has Copart Performed Compared to Its Peers?

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Sep. 23 2015, Published 8:53 p.m. ET

Copart and its peers

Gross profit margins for Copart (CPRT), KAR Auction Services (KAR), Sothebys (BID), LKQ (LKQ), and Penske Automotive Group (PAG) are 42.07%, 44.33%, 83.86%, 39.39%, and 14.88%, respectively.

EPS (earnings per share) for Copart (CPRT), KAR Auction Services (KAR), Sothebys (BID), LKQ (LKQ), and Penske Automotive Group (PAG) are $0.44, $0.41, $0.95, $0.39, and $1.05, respectively.

The current ratios of Copart (CPRT), KAR Auction Services (KAR), Sothebys (BID), LKQ (LKQ), and Penske Automotive Group (PAG) are 3.44, 1.21, 1.84, 3.27, and 1.01, respectively.

An analysis of Copart valuation follows:

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  • The PE (price-to-earnings) ratios of Copart (CPRT), KAR Auction Services (KAR), Sothebys (BID), LKQ (LKQ), and Penske Automotive Group (PAG) are 21.22x, 24.34x, 20.53x, 22.95x, and 13.84, respectively.
  • The PB (price-to-book value) ratios of Copart (CPRT), KAR Auction Services (KAR), Sothebys (BID), LKQ (LKQ), and Penske Automotive Group (PAG) are 3.82x, 3.25x, 2.54x, 3.07x, and 2.60x, respectively.

According to these findings, Copart’s competitors have outperformed Copart based on gross profit margin, EPS, and PE. However, based on the current ratio and PB, Copart has performed well compared to its peers.

ETFs that invest in Copart

The PowerShares S&P MiCap Low Volatility ETF (XMLV) invests 1.33% of its holdings in Copart. XMLV tracks a volatility-weighted index of the 80 least volatile S&P MidCap 400 companies.

The Guggenheim Mid-Cap Core ETF (CZA) invests 0.56% of its holdings in Copart. CZA tracks the Zacks Mid-Cap Core Index, a proprietary selected portfolio of 100 midcap stocks that seeks to outperform pure market-cap indexes.

The iShares S&P Mid Cap 400 Growth ETF (IJK) invests 0.50% of its holdings in Copart. IJK tracks a market-cap-weighted index of growth companies culled from the S&P 400.

Copart compared to its ETFs

The year-to-date price movements of Copart (CPRT), XMLV, CZA, and IJK are -5.81%, 0.90%, -1.34%, and 3.33%, respectively.

An analysis of Copart valuation follows:

  • The PE (price-to-earnings) ratios of Copart (CPRT), XMLV, CZA, and IJK are 21.22x, 21.51x, 18.99x, and 28.01x, respectively.
  • The PB (price-to-book value) ratios of Copart (CPRT), XMLV, CZA, and IJK are 3.82x, 2.38x, 2.18x, and 3.78x, respectively.

According to these findings, ETFs have outperformed Copart based on price movement and PE. However, based on PB, Copart is way ahead of its ETFs.

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