Analyzing CarGurus (NASDAQ:CARG) and Viewtran Group (OTCMKTS:VIEWF)

CarGurus (NASDAQ:CARG) and Viewtran Group (OTCMKTS:VIEWF) are both communication services companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares CarGurus and Viewtran Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CarGurus	18.06%	62.88%	32.82%
Viewtran Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for CarGurus and Viewtran Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CarGurus	0	7	7	1	2.60
Viewtran Group	0	0	0	0	0.00

CarGurus presently has a consensus target price of $40.75, suggesting a potential upside of 12.57%. Given CarGurus’ stronger consensus rating and higher probable upside, research analysts plainly believe CarGurus is more favorable than Viewtran Group.

Volatility & Risk

CarGurus has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Viewtran Group has a beta of -30.26, meaning that its share price is 3,126% less volatile than the S&P 500.

Earnings & Valuation

This table compares CarGurus and Viewtran Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CarGurus	$967.27 million	3.33	$155.90 million	$1.84	19.67
Viewtran Group	N/A	N/A	N/A	N/A	N/A

CarGurus has higher revenue and earnings than Viewtran Group.

Institutional and Insider Ownership

86.9% of CarGurus shares are owned by institutional investors. 18.2% of CarGurus shares are owned by company insiders. Comparatively, 29.2% of Viewtran Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

CarGurus beats Viewtran Group on 10 of the 11 factors compared between the two stocks.

About CarGurus

CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers. It also offers dealer and non-dealer advertising products for its websites and social media platforms. The company operates online marketplaces under the CarGurus brand in the United States, Canada, and the United Kingdom; Autolist and CarOffer brands in the United States; and PistonHeads brand in the United Kingdom. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

About Viewtran Group

Viewtran Group, Inc. provides supply chain financial services and enterprise solutions for the technology industry in China. It offers software development and technical deployment services; and hardware, software, and technical services. The company was formerly known as Cogo Group, Inc. and changed its name to Viewtran Group, Inc. in November 2013. Viewtran Group, Inc. is based in Shenzhen, China.