Comparing CarGurus (CARG) and TrueCar (TRUE)
CarGurus (NASDAQ: CARG) and TrueCar (NASDAQ:TRUE) are both technology companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.
Institutional & Insider Ownership
92.2% of TrueCar shares are owned by institutional investors. 15.5% of TrueCar shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares CarGurus and TrueCar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations and price targets for CarGurus and TrueCar, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CarGurus currently has a consensus target price of $29.50, indicating a potential downside of 3.69%. TrueCar has a consensus target price of $17.50, indicating a potential upside of 49.06%. Given TrueCar’s stronger consensus rating and higher probable upside, analysts plainly believe TrueCar is more favorable than CarGurus.
Valuation and Earnings
This table compares CarGurus and TrueCar’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TrueCar||$277.51 million||4.23||-$41.70 million||($0.35)||-33.54|
CarGurus has higher earnings, but lower revenue than TrueCar. CarGurus is trading at a lower price-to-earnings ratio than TrueCar, indicating that it is currently the more affordable of the two stocks.
TrueCar beats CarGurus on 7 of the 11 factors compared between the two stocks.
CarGurus Company Profile
CarGurus, Inc. is an online automotive marketplace connecting buyers and sellers of new and used cars. Using proprietary technology, search algorithms, and data analytics. The Company’s marketplace empowers users with unbiased third-party validation on pricing and dealer reputation as well as other information that aids them in finding Great Deals from Great Dealers. In addition to the United States, the Company operates online marketplaces in Canada, the United Kingdom, and Germany. The Company’s products include Consumer Marketplace, Dealer Marketplace, Dealer Dashboard, Dealer Advertising and Customer Acquisition Products, Auto Manufacturer and Other Advertiser Products.
TrueCar Company Profile
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.
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