Financial Contrast: Care.com (NYSE:CRCM) vs. Connecture (CNXR)
Care.com (NYSE: CRCM) and Connecture (NASDAQ:CNXR) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Insider & Institutional Ownership
72.5% of Care.com shares are owned by institutional investors. Comparatively, 39.8% of Connecture shares are owned by institutional investors. 24.7% of Care.com shares are owned by insiders. Comparatively, 58.1% of Connecture shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Care.com and Connecture’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent recommendations for Care.com and Connecture, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Care.com currently has a consensus price target of $14.00, suggesting a potential downside of 9.56%. Given Care.com’s higher probable upside, analysts plainly believe Care.com is more favorable than Connecture.
Risk and Volatility
Care.com has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Connecture has a beta of 2.13, indicating that its stock price is 113% more volatile than the S&P 500.
Earnings and Valuation
This table compares Care.com and Connecture’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Care.com||$165.85 million||2.74||$7.41 million||$0.10||154.82|
|Connecture||$82.18 million||0.17||-$8.10 million||($1.02)||-0.62|
Care.com has higher revenue and earnings than Connecture. Connecture is trading at a lower price-to-earnings ratio than Care.com, indicating that it is currently the more affordable of the two stocks.
Care.com beats Connecture on 10 of the 12 factors compared between the two stocks.
Care.com, Inc. is an online marketplace for finding and managing family care. As of December 31, 2016, the Company had 22.8 million members, including 12.9 million families and 9.9 million caregivers, spanning 19 countries. Its consumer matching solutions allow families to search for, qualify, vet, connect with and select caregivers. It also provides caregivers with solutions to create personal profiles, describe their skills and experience, and otherwise differentiate and market themselves in a fragmented marketplace. In addition to consumer matching solutions, the Company offers its members products and services to facilitate their interaction with caregivers. It serves employers by providing access to certain of its products and services to employer-sponsored families. In addition, it serves care-related businesses, such as day care centers, nanny agencies and home care agencies, willing to market their services to its care-seeking families and recruit its caregiver members.
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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