TrueCar (NASDAQ: TRUE) and (NASDAQ:CARS) are both technology companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Valuation & Earnings

This table compares TrueCar and ‘s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
TrueCar $277.51 million 4.02 -$41.70 million ($0.35) -31.86
N/A N/A N/A N/A N/A

has higher revenue, but lower earnings than TrueCar.

Analyst Recommendations

This is a breakdown of current ratings and target prices for TrueCar and , as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TrueCar 0 3 6 0 2.67
0 0 0 0 N/A

TrueCar currently has a consensus target price of $17.44, indicating a potential upside of 56.45%.

Profitability

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

Net Margins Return on Equity Return on Assets
TrueCar -11.55% -12.61% -10.13%
N/A N/A N/A

Insider and Institutional Ownership

91.3% of TrueCar shares are held by institutional investors. 15.5% of TrueCar shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

TrueCar beats on 4 of the 7 factors compared between the two stocks.

TrueCar Company Profile

TrueCar, Inc. is an Internet-based information, technology, and communication services company. The Company has a data-driven online platform, which features market data and analytics. The Company-branded platform is available on its TrueCar Website and mobile applications. It customizes and operates its platform on a co-branded basis for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for a range of enterprises. The Company enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar Certified Dealers. Its network of over 13,000 TrueCar Certified Dealers consists primarily of new car franchises, as well as independent dealers selling used vehicles. Its subsidiary, ALG, Inc., provides forecasts and consulting services regarding determination of the residual value of an automobile at given future points in time.

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