Comparing TrueCar (TRUE) and Connecture (CNXR)
TrueCar (NASDAQ: TRUE) and Connecture (OTCMKTS:CNXR) are both small-cap technology companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Institutional & Insider Ownership
92.2% of TrueCar shares are owned by institutional investors. Comparatively, 38.4% of Connecture shares are owned by institutional investors. 15.5% of TrueCar shares are owned by company insiders. Comparatively, 68.6% of Connecture shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
TrueCar has a beta of 2.7, meaning that its share price is 170% more volatile than the S&P 500. Comparatively, Connecture has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500.
This table compares TrueCar and Connecture’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares TrueCar and Connecture’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TrueCar||$277.51 million||4.22||-$41.70 million||($0.35)||-33.43|
|Connecture||$81.89 million||0.10||-$26.53 million||($0.92)||-0.37|
Connecture has lower revenue, but higher earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than Connecture, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings for TrueCar and Connecture, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TrueCar currently has a consensus price target of $17.50, indicating a potential upside of 49.57%. Given TrueCar’s higher possible upside, equities analysts plainly believe TrueCar is more favorable than Connecture.
TrueCar beats Connecture on 9 of the 13 factors compared between the two stocks.
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.
Connecture, Inc. provides a Web-based consumer shopping, enrollment and retention platform for health insurance distribution. The Company caters its services to health insurance marketplace operators, such as health plans, brokers and exchange operators. It operates through four segments: Enterprise/Commercial, Enterprise/State, Medicare and Private Exchange. The Enterprise/Commercial segment offers insurance distribution solutions to health plans. The Enterprise/State segment offers the sales automation solutions to state Governments, which allow its customers to offer customized individual and small group exchanges. The Medicare segment offers Web-based Medicare plan comparison, prescription drug comparison and enrollment tools for health plans, pharmacy benefit managers, pharmacies, field marketing organizations and call centers. The Private Exchange segment offers defined-contribution benefit exchange solutions to benefit consultants, brokers, exchange operators and aggregators.
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