TrueCar (NASDAQ: TRUE) and Qunar Cayman Islands (NASDAQ:QUNR) are both computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitabiliy, institutional ownership, earnings and dividends.

Profitability

This table compares TrueCar and Qunar Cayman Islands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TrueCar -12.64% -13.82% -10.50%
Qunar Cayman Islands -67.87% -291.65% -30.15%

Risk & Volatility

TrueCar has a beta of 3.02, meaning that its stock price is 202% more volatile than the S&P 500. Comparatively, Qunar Cayman Islands has a beta of 2.05, meaning that its stock price is 105% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for TrueCar and Qunar Cayman Islands, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TrueCar 1 2 7 0 2.60
Qunar Cayman Islands 0 0 1 0 3.00

TrueCar currently has a consensus price target of $17.06, indicating a potential downside of 9.13%. Qunar Cayman Islands has a consensus price target of $51.00, indicating a potential upside of 67.71%. Given Qunar Cayman Islands’ stronger consensus rating and higher probable upside, analysts clearly believe Qunar Cayman Islands is more favorable than TrueCar.

Insider and Institutional Ownership

83.6% of TrueCar shares are owned by institutional investors. Comparatively, 4.9% of Qunar Cayman Islands shares are owned by institutional investors. 17.3% of TrueCar shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares TrueCar and Qunar Cayman Islands’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
TrueCar $291.40 million 5.98 -$20.73 million ($0.43) -43.65
Qunar Cayman Islands N/A N/A N/A ($8.43) -3.61

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

Summary

TrueCar beats Qunar Cayman Islands on 9 of the 11 factors compared between the two stocks.

About TrueCar

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.

About Qunar Cayman Islands

Qunar Cayman Islands Limited (Qunar) is engaged in offering mobile and online commerce platform for travel in China. The Company offers a range of travel products, including flights, hotels, vacations packages, attraction tickets and other travel related offerings. The Company offers Qunar Travel, which is a mobile application that enables its users to search for and purchase travel products. The Company’s software as a service (SaaS) system provides an online presence for over 360,000 travel service providers. Its search engine provides real-time travel products information directly sourced from travel service providers and through its SaaS platform. The Company’s main lines of business include flight tickets, hotels, vacation packages and attraction tickets. It offers display advertising, train tickets, car services, tour guides and other services. Its system provides instant confirmation of booking, rescheduling and cancellation for its flight ticket transactions.

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