Head-To-Head Survey: Rumble (NASDAQ:RUM) versus TrueCar (NASDAQ:TRUE)

TrueCar (NASDAQ:TRUE) and Rumble (NASDAQ:RUM) are both communication services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, risk, institutional ownership, profitability, valuation and earnings.

Institutional and Insider Ownership

79.4% of TrueCar shares are owned by institutional investors. Comparatively, 26.2% of Rumble shares are owned by institutional investors. 3.9% of TrueCar shares are owned by insiders. Comparatively, 45.1% of Rumble shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

TrueCar has a beta of 2.22, meaning that its share price is 122% more volatile than the S&P 500. Comparatively, Rumble has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Profitability

This table compares TrueCar and Rumble’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TrueCar	-10.27%	-23.76%	-18.02%
Rumble	-134.60%	-22.77%	-16.34%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for TrueCar and Rumble, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrueCar	1	4	0	0	1.80
Rumble	1	0	0	0	1.00

TrueCar currently has a consensus price target of $2.55, indicating a potential upside of 0.39%. Given TrueCar’s stronger consensus rating and higher possible upside, research analysts clearly believe TrueCar is more favorable than Rumble.

Valuation and Earnings

This table compares TrueCar and Rumble”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrueCar	$181.22 million	1.25	-$31.05 million	($0.22)	-11.55
Rumble	$100.62 million	41.19	-$81.83 million	($0.59)	-14.17

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

Summary

TrueCar beats Rumble on 9 of the 13 factors compared between the two stocks.

About TrueCar

TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. In addition, it provides TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. The company was incorporated in 2005 and is headquartered in Santa Monica, California.

About Rumble

Rumble Inc. operates video sharing platforms in the United States, Canada, and internationally. The company operates rumble.com, a free-to-use video sharing and livestreaming platform where users can subscribe to channels to stay in touch with creators, and access video on-demand (VOD) and live content streamed by creators. It also operates locals.com, a platform where users can access free content and purchase subscriptions to support creators and access exclusive content in creator communities; Rumble Streaming Marketplace, a patent-pending application designed to enable a first-of-its-kind livestreaming and monetization service for creators; and Rumble Advertising Center (RAC), an online advertising management exchange. The company was founded in 2013 and is headquartered in Longboat Key, Florida.