Contrasting Cars.com (CARS) & 58.com (WUBA)
Cars.com (NASDAQ: CARS) and 58.com (NYSE:WUBA) are both internet services – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Earnings & Valuation
This table compares Cars.com and 58.com’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|58.com||$1.14 billion||8.70||-$110.71 million||$0.17||401.71|
Cars.com has higher revenue, but lower earnings than 58.com. Cars.com is trading at a lower price-to-earnings ratio than 58.com, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Cars.com and 58.com, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cars.com presently has a consensus price target of $30.50, indicating a potential upside of 25.93%. 58.com has a consensus price target of $53.10, indicating a potential downside of 22.24%. Given Cars.com’s stronger consensus rating and higher probable upside, equities analysts plainly believe Cars.com is more favorable than 58.com.
Insider and Institutional Ownership
61.2% of 58.com shares are owned by institutional investors. 11.9% of 58.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Cars.com and 58.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cars.com beats 58.com on 6 of the 10 factors compared between the two stocks.
Cars.com Inc. owns a digital automotive marketplace business (Cars.com). Cars.com is an online research destination for car shoppers. The Company is engaged in the sale of online subscription advertising products targeting car dealerships. It offers a suite of products and services targeting the automotive needs of its buyer and seller customers. Cars.com offers a digital automotive marketplace search engine that helps car buyers to make informed purchasing decisions and helps sellers to engage with a portion of their target customer base. This online automotive marketplace service connects buyers and sellers across five Websites: Cars.com, Auto.com, DealerRater.com, NewCars.com and PickupTrucks.com. Its automotive marketplace products also include credible user and automotive and dealer reviews. It is also engaged in the sale of display advertising to national advertisers. Car buyers and car owners interface with Cars.com primarily through the Cars.com sites and mobile applications.
58.com Inc. is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Daojia Inc., its subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services, such as home cleaning, moving services and manicure services provided at home. Its classifieds and listing platforms contain local information for over 480 cities across various content categories, including jobs, real estate, used goods, automotive and yellow pages. It also offers membership, online marketing services and e-commerce services.
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