Critical Contrast: Cars.com (CARS) and Care.com (CRCM)
Cars.com (NASDAQ: CARS) and Care.com (NYSE:CRCM) are both small-cap technology companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Earnings and Valuation
This table compares Cars.com and Care.com’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cars.com||$633.77 million||3.10||$228.73 million||N/A||N/A|
|Care.com||$169.64 million||2.87||$8.45 million||$0.10||163.62|
Cars.com has higher revenue and earnings than Care.com.
This table compares Cars.com and Care.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
73.7% of Care.com shares are owned by institutional investors. 24.7% of Care.com shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for Cars.com and Care.com, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cars.com presently has a consensus target price of $30.50, indicating a potential upside of 11.15%. Care.com has a consensus target price of $14.00, indicating a potential downside of 14.43%. Given Cars.com’s stronger consensus rating and higher probable upside, equities analysts plainly believe Cars.com is more favorable than Care.com.
Cars.com beats Care.com on 7 of the 12 factors compared between the two stocks.
Cars.com Inc. owns a digital automotive marketplace business (Cars.com). Cars.com is an online research destination for car shoppers. The Company is engaged in the sale of online subscription advertising products targeting car dealerships. It offers a suite of products and services targeting the automotive needs of its buyer and seller customers. Cars.com offers a digital automotive marketplace search engine that helps car buyers to make informed purchasing decisions and helps sellers to engage with a portion of their target customer base. This online automotive marketplace service connects buyers and sellers across five Websites: Cars.com, Auto.com, DealerRater.com, NewCars.com and PickupTrucks.com. Its automotive marketplace products also include credible user and automotive and dealer reviews. It is also engaged in the sale of display advertising to national advertisers. Car buyers and car owners interface with Cars.com primarily through the Cars.com sites and mobile applications.
Care.com, Inc. is an online marketplace for finding and managing family care. As of December 31, 2016, the Company had 22.8 million members, including 12.9 million families and 9.9 million caregivers, spanning 19 countries. Its consumer matching solutions allow families to search for, qualify, vet, connect with and select caregivers. It also provides caregivers with solutions to create personal profiles, describe their skills and experience, and otherwise differentiate and market themselves in a fragmented marketplace. In addition to consumer matching solutions, the Company offers its members products and services to facilitate their interaction with caregivers. It serves employers by providing access to certain of its products and services to employer-sponsored families. In addition, it serves care-related businesses, such as day care centers, nanny agencies and home care agencies, willing to market their services to its care-seeking families and recruit its caregiver members.
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