Financial Comparison: Vroom (VRM) & Its Rivals

Vroom (NASDAQ: VRM) is one of 29 public companies in the “Automotive dealers & gasoline service stations” industry, but how does it weigh in compared to its peers? We will compare Vroom to similar businesses based on the strength of its valuation, dividends, risk, analyst recommendations, earnings, profitability and institutional ownership.

Institutional and Insider Ownership

88.9% of Vroom shares are held by institutional investors. Comparatively, 55.0% of shares of all “Automotive dealers & gasoline service stations” companies are held by institutional investors. 17.4% of Vroom shares are held by insiders. Comparatively, 18.4% of shares of all “Automotive dealers & gasoline service stations” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Vroom and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vroom 2 3 13 0 2.61
Vroom Competitors 205 1089 1338 46 2.46

Vroom presently has a consensus price target of $57.00, indicating a potential upside of 33.40%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 7.98%. Given Vroom’s stronger consensus rating and higher possible upside, equities analysts clearly believe Vroom is more favorable than its peers.

Profitability

This table compares Vroom and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vroom -15.19% -19.28% -14.27%
Vroom Competitors 3.54% 134.64% 5.39%

Valuation and Earnings

This table compares Vroom and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vroom $1.36 billion -$202.80 million -17.51
Vroom Competitors $6.49 billion $175.08 million 4.91

Vroom’s peers have higher revenue and earnings than Vroom. Vroom is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Vroom peers beat Vroom on 8 of the 12 factors compared.

Vroom Company Profile

Vroom, Inc. operates an e-commerce platform for buying and selling of new and used cars in the United States. It also offers financing solutions. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. The company was incorporated in 2012 and is headquartered in New York, New York.

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