Contrasting Fiverr International (NYSE:FVRR) & Cars.com (NYSE:CARS)

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

Insider & Institutional Ownership

89.2% of Cars.com shares are owned by institutional investors. Comparatively, 59.0% of Fiverr International shares are owned by institutional investors. 2.4% of Cars.com shares are owned by insiders. Comparatively, 15.9% of Fiverr International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cars.com	0	4	4	0	2.50
Fiverr International	2	6	4	0	2.17

Cars.com currently has a consensus target price of $16.08, indicating a potential upside of 87.56%. Fiverr International has a consensus target price of $19.30, indicating a potential upside of 78.44%. Given Cars.com’s stronger consensus rating and higher probable upside, research analysts plainly believe Cars.com is more favorable than Fiverr International.

Earnings & Valuation

This table compares Cars.com and Fiverr International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cars.com	$723.24 million	0.71	$48.19 million	$0.32	26.80
Fiverr International	$430.91 million	0.90	$20.98 million	$0.57	18.98

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

Volatility and Risk

Cars.com has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Fiverr International has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cars.com	2.77%	17.21%	7.75%
Fiverr International	4.87%	16.58%	6.51%

Summary

Cars.com beats Fiverr International on 9 of the 13 factors compared between the two stocks.

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.

About Fiverr International

Fiverr International Ltd. operates an online marketplace worldwide. Its platform enables sellers to sell their services and buyers to buy them. The company's platform includes various categories in ten verticals, including graphic and design, digital marketing, writing and translation, video and animation, music and audio, programming and tech, business, data, lifestyle, and photography. It also offers value-added products, including subscription-based content marketing, back-office, learning and development offerings, creative talent, and freelancer management platforms. In addition, the company provides a suite of professional solutions that enable businesses to engage with freelancers; Fiverr Pro, a marketplace; Fiverr Certified, a storefront to access certified experts for partner vendors; Fiverr Enterprise, a gateway to source and manage on-demand and long-term freelancers. Further, it offers various value-added products, including Promoted Gigs which allows sellers to advertise their services on the platform; and Seller Plus, a subscription program that equips sellers with advanced tools. The company's buyers include businesses of various sizes, as well as sellers comprise a group of freelancers and agencies. Fiverr International Ltd. was incorporated in 2010 and is headquartered in Tel Aviv, Israel.