Head to Head Comparison: ACV Auctions (NASDAQ:ACVA) & ASAP (NASDAQ:WTRH)

ASAP (NASDAQ:WTRH) and ACV Auctions (NASDAQ:ACVA) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.

Institutional & Insider Ownership

26.3% of ASAP shares are owned by institutional investors. Comparatively, 88.6% of ACV Auctions shares are owned by institutional investors. 14.2% of ASAP shares are owned by company insiders. Comparatively, 2.9% of ACV Auctions shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares ASAP and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ASAP	-131.13%	-52.13%	-19.80%
ACV Auctions	-12.51%	-12.94%	-5.75%

Analyst Recommendations

This is a summary of current ratings for ASAP and ACV Auctions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ASAP	0	0	0	0	0.00
ACV Auctions	0	1	10	0	2.91

ACV Auctions has a consensus target price of $19.45, suggesting a potential upside of 92.89%. Given ACV Auctions’ stronger consensus rating and higher probable upside, analysts plainly believe ACV Auctions is more favorable than ASAP.

Volatility and Risk

ASAP has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500. Comparatively, ACV Auctions has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500.

Earnings and Valuation

This table compares ASAP and ACV Auctions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ASAP	$130.00 million	0.00	-$5.23 million	($1.03)	N/A
ACV Auctions	$707.24 million	2.45	-$79.70 million	($0.39)	-25.86

ASAP has higher earnings, but lower revenue than ACV Auctions. ACV Auctions is trading at a lower price-to-earnings ratio than ASAP, indicating that it is currently the more affordable of the two stocks.

Summary

ACV Auctions beats ASAP on 10 of the 13 factors compared between the two stocks.

About ASAP

ASAP, Inc. operates an online ordering technology platform in the United States. Its platform allows to order food, alcohol, convenience, grocery, flowers, auto parts, and others. The company's platform also facilitates access to third parties that provide payment processing solutions for restaurants and other merchants. As of June 30, 2022, it had approximately 27,000 restaurants in approximately 1,000 cities. The company was formerly known as Waitr Holdings Inc. and changed its name to ASAP, Inc. in August 2022. ASAP, Inc. was founded in 2013 and is headquartered in Lafayette, Louisiana.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company’s marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green’s seller assurance service for against claims related to defects in the vehicle. It also provides remarketing centers, which offers value-added services, such as vehicle reconditioning and storage for dealers and commercial partners. In addition, the company offers data services, including True360 report, which provides cosmetic and structural vehicle assessments integrated into vehicle history reports for dealer to make wholesale and retail transaction decisions on and off the marketplace; ACV market report provides transaction data and condition reports for comparable used vehicles, including pricing data from third-party sources and allows dealers to determine pricing and valuation strategies for used vehicles; and ACV MAX inventory management software enables dealers to manage their inventory and set pricing while turning vehicles. Further, it provides data and technology through inspection, such as condition reports, virtual lift solutions, apex device, and vehicle intelligence platform; and marketplace enablement, comprising MyACV application, private marketplaces, operations automation, live appraisals, and programmatic buying service. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.