TrueCar (TRUE) vs. Qunar Cayman Islands (QUNR) Financial Analysis
TrueCar (NASDAQ: TRUE) and Qunar Cayman Islands (NASDAQ:QUNR) are both computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their profitabiliy, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.
Earnings and Valuation
This table compares TrueCar and Qunar Cayman Islands’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|TrueCar||$291.40 million||5.99||-$20.73 million||($0.43)||-43.72|
|Qunar Cayman Islands||N/A||N/A||N/A||($8.43)||-3.61|
Qunar Cayman Islands has higher revenue, but lower earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than Qunar Cayman Islands, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for TrueCar and Qunar Cayman Islands, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Qunar Cayman Islands||0||0||1||0||3.00|
TrueCar currently has a consensus price target of $17.06, suggesting a potential downside of 9.28%. Qunar Cayman Islands has a consensus price target of $51.00, suggesting a potential upside of 67.71%. Given Qunar Cayman Islands’ stronger consensus rating and higher possible upside, analysts plainly believe Qunar Cayman Islands is more favorable than TrueCar.
Institutional and Insider Ownership
83.7% of TrueCar shares are owned by institutional investors. Comparatively, 4.9% of Qunar Cayman Islands shares are owned by institutional investors. 17.3% of TrueCar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
TrueCar has a beta of 2.97, meaning that its stock price is 197% more volatile than the S&P 500. Comparatively, Qunar Cayman Islands has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.
This table compares TrueCar and Qunar Cayman Islands’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Qunar Cayman Islands||-67.87%||-291.65%||-30.15%|
TrueCar beats Qunar Cayman Islands on 9 of the 11 factors compared between the two stocks.
TrueCar, Inc. is an Internet-based information, technology, and communication services company. The Company has a data-driven online platform, which features market data and analytics. The Company-branded platform is available on its TrueCar Website and mobile applications. It customizes and operates its platform on a co-branded basis for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for a range of enterprises. The Company enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar Certified Dealers. Its network of over 13,000 TrueCar Certified Dealers consists primarily of new car franchises, as well as independent dealers selling used vehicles. Its subsidiary, ALG, Inc., provides forecasts and consulting services regarding determination of the residual value of an automobile at given future points in time.
About Qunar Cayman Islands
Qunar Cayman Islands Limited (Qunar) is engaged in offering mobile and online commerce platform for travel in China. The Company offers a range of travel products, including flights, hotels, vacations packages, attraction tickets and other travel related offerings. The Company offers Qunar Travel, which is a mobile application that enables its users to search for and purchase travel products. The Company’s software as a service (SaaS) system provides an online presence for over 360,000 travel service providers. Its search engine provides real-time travel products information directly sourced from travel service providers and through its SaaS platform. The Company’s main lines of business include flight tickets, hotels, vacation packages and attraction tickets. It offers display advertising, train tickets, car services, tour guides and other services. Its system provides instant confirmation of booking, rescheduling and cancellation for its flight ticket transactions.
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