Head-To-Head Survey: Cars.com (NYSE:CARS) & MDWerks (OTCMKTS:MDWK)

MDWerks (OTCMKTS:MDWK) and Cars.com (NYSE:CARS) are both small-cap retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Risk & Volatility

MDWerks has a beta of 17.15, meaning that its stock price is 1,615% more volatile than the S&P 500. Comparatively, Cars.com has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for MDWerks and Cars.com, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MDWerks	0	0	0	0	0.00
Cars.com	0	3	4	0	2.57

Cars.com has a consensus target price of $17.70, suggesting a potential upside of 31.03%. Given Cars.com’s stronger consensus rating and higher possible upside, analysts plainly believe Cars.com is more favorable than MDWerks.

Insider and Institutional Ownership

89.2% of Cars.com shares are held by institutional investors. 2.1% of Cars.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares MDWerks and Cars.com”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MDWerks	$2.36 million	12.05	-$1.62 million	($0.03)	-4.05
Cars.com	$719.15 million	1.12	$48.19 million	$0.46	29.37

Cars.com has higher revenue and earnings than MDWerks. MDWerks is trading at a lower price-to-earnings ratio than Cars.com, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MDWerks and Cars.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MDWerks	-179.07%	-308.26%	-88.71%
Cars.com	4.16%	18.32%	8.30%

Summary

Cars.com beats MDWerks on 12 of the 14 factors compared between the two stocks.

About MDWerks

MDWerks, Inc., together with its subsidiaries, provides energy waving technologies in the United States. The company offers green and radio wave technologies. It also produces and sells alcoholic beverages, including whiskey and vodka. In addition, the company develops radio frequency applications. It serves structural engineering, food and beverage, alcoholic beverages, manufacturing, and adhesives industries. MDWerks, Inc. is based in Green Cove Springs, Florida.

About Cars.com

Cars.com Inc., through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers. It also sells online subscription advertising products to car dealerships by its direct sales force, as well as through its affiliate sales channel. In addition, the company sells display advertising to national advertisers. Further, it offers online automotive marketplace service that connects buyers and sellers through Cars.com, Auto.com, DealerRater.com, NewCars.com, PickupTrucks.com, DealerInspire.com, and LaunchDigitalMarketing.com Websites. Its platform hosts approximately 4.9 million new and used vehicle listings and serves approximately 20,000 franchise and independent car dealers. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.