Automotive retailers are now in the spotlight as the economy reopens. Used car prices are soaring as new car production is hampered by the chip shortage. Further, demand should be strong with the economy reopening.

Even some those who currently own and lease automobiles are likely to consider trading in their vehicle for a new one as a result of tempting offers in this particularly hot economic sector. The purchase of both new and used vehicles will catalyze our economy all the more. However, there is the potential for this rising to lift certain boats while leaving others behind.

Below, we provide a look at two of the most attractive automotive retail stocks in Carvana (CVNA) and CarGurus (CARG).

Carvana (CVNA)

CVNA isn't exactly a POWR Ratings superstar. The stock has an F grade in the POWR Ratings, meaning it is a Strong Sell. However, CVNA has an A Momentum grade along with Ds in the Value, Growth, and Stability components. If you are curious as to how CVNA grades out in the Quality and Sentiment components of the POWR Ratings, you can find out by clicking here.

Of the 71 publicly traded companies in the Internet space, CVNA is ranked 71st. If you would like to learn more about this industry, you can do so by clicking here.

The analysts are bearish on CVNA, setting an average target price of $231 for the stock. If CVNA dips to $231, it will have declined by slightly more than 21%. The lowest target price for the stock is $80 while the highest target price for the stock is $270.

CVNA is currently trading at $285. The stock's 52-week high is $323.39. CVNA's 52-week low is $80.21. CVNA spiked this past February following its impressive Q4 results. CVNA retail unit sales soared 43% compared to the same quarter one year ago. Company revenue climbed 65%, jumping to $1.83 billion. CVNA's gross profit increased more than 70% in the quarter.

CarGurus (CARG)

CARG provides a web-based automotive marketplace that links buyers to sellers. In short, CARG makes it easy to buy and sell used vehicles. CARG, based in Cambridge, MA, conducts business in the United States, the United Kingdom, Germany, and Canada.

CARG has a forward P/E ratio of 26.42. However, this somewhat elevated ratio is not a red flag as there is an argument to be made that CARG is just as much of a tech company as an automotive business. CARG is currently trading at $23.58. The stock's 52-week high is $36.54. CARG's 52-week low is $19.24.

CARG has a POWR Rating grade of B. The stock has an A grade in the Quality component along with Bs in the Value and Growth components. Investors who are curious as to how CARG fares in the remainder of the POWR Ratings components such as Momentum, Stability, and Sentiment can find out by clicking here.

Out of more than 70 stocks in the Internet industry, CARG is ranked 6th. You can learn more about the stocks in the Internet space by clicking here.

The top analysts paint a rosy picture for CARG's future, setting an average target price of $34.36 for the stock. If CARG rises to this level, it will have popped by more than 36%. The highest analyst target price for CARG is $40 while the lowest is $27. Of the 13 analysts who have issued recommendations on CARG, three consider it a Strong Buy, five consider it a Buy, and five consider it a Hold.

Which is the Better Buy?

CARG is the better buy as it beats out CVNA in the POWR Ratings. Furthermore, CARG is ranked 6th in the Internet segment. CVNA is ranked dead last in this segment. Both of these automotive stocks may climb higher in the months ahead yet CARG is the better stock on a risk-reward basis.