Head-To-Head Survey: Yunji (NASDAQ:YJ) & Cars.com (NYSE:CARS)

Yunji (NASDAQ:YJ) and Cars.com (NYSE:CARS) are both small-cap retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.

Risk & Volatility

Yunji has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, Cars.com has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Yunji	-29.39%	-10.42%	-8.33%
Cars.com	5.71%	17.43%	7.91%

Institutional & Insider Ownership

89.2% of Cars.com shares are owned by institutional investors. 45.3% of Yunji shares are owned by insiders. Comparatively, 2.1% of Cars.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Yunji and Cars.com”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yunji	$57.22 million	0.15	-$16.86 million	($3.44)	-0.50
Cars.com	$719.15 million	1.09	$48.19 million	$0.62	20.60

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Yunji and Cars.com, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yunji	0	0	0	0	0.00
Cars.com	0	1	4	1	3.00

Cars.com has a consensus target price of $17.30, indicating a potential upside of 35.42%. Given Cars.com’s stronger consensus rating and higher possible upside, analysts clearly believe Cars.com is more favorable than Yunji.

Summary

Cars.com beats Yunji on 14 of the 15 factors compared between the two stocks.

About Yunji

Yunji Inc., together with its subsidiaries, operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.

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.