Analyzing 58.com (WUBA) and TrueCar (TRUE)
58.com (NYSE: WUBA) and TrueCar (NASDAQ:TRUE) are both computer and technology companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.
Earnings and Valuation
This table compares 58.com and TrueCar’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|58.com||$1.31 billion||7.11||$225.01 million||$0.17||376.29|
|TrueCar||$306.80 million||5.40||-$16.51 million||($0.35)||-48.03|
58.com has higher revenue and earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than 58.com, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for 58.com and TrueCar, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
58.com currently has a consensus target price of $53.10, suggesting a potential downside of 16.99%. TrueCar has a consensus target price of $18.50, suggesting a potential upside of 10.05%. Given TrueCar’s stronger consensus rating and higher possible upside, analysts clearly believe TrueCar is more favorable than 58.com.
Volatility & Risk
58.com has a beta of 2.17, meaning that its share price is 117% more volatile than the S&P 500. Comparatively, TrueCar has a beta of 3, meaning that its share price is 200% more volatile than the S&P 500.
This table compares 58.com and TrueCar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
60.0% of 58.com shares are owned by institutional investors. Comparatively, 91.7% of TrueCar shares are owned by institutional investors. 11.9% of 58.com shares are owned by company insiders. Comparatively, 15.5% of TrueCar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
58.com beats TrueCar on 7 of the 13 factors compared between the two stocks.
58.com Inc. is a holding company. The Company’s business consists of its online classifieds and listing platforms. Its online classifieds and listings platforms enable local merchants and consumers to connect, share information and conduct business in China. These platforms include 58, Ganji and Anjuke. 58 and Ganji are online multi-content category-classified advertising platforms, while Anjuke is an online real estate listing platform. In addition, 58 Daojia Inc., its subsidiary, operates a mobile-based closed-loop transactional platform for home services, which directly connects consumers and individual service providers for local services, such as home cleaning, moving services and manicure services provided at home. Its classifieds and listing platforms contain local information for over 480 cities across various content categories, including jobs, real estate, used goods, automotive and yellow pages. It also offers membership, online marketing services and e-commerce services.
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.
Receive News & Ratings for 58.com Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for 58.com Inc. and related companies with MarketBeat.com's FREE daily email newsletter.