Financial Review: CarGurus (CARG) versus Weibo (WB)

CarGurus (NASDAQ: CARG) and Weibo (NASDAQ:WB) are both mid-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Analyst Recommendations

This is a breakdown of recent recommendations for CarGurus and Weibo, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CarGurus 0 4 1 0 2.20
Weibo 0 0 7 0 3.00

CarGurus currently has a consensus target price of $29.50, indicating a potential upside of 0.68%. Weibo has a consensus target price of $93.86, indicating a potential downside of 10.47%. Given CarGurus’ higher possible upside, equities research analysts plainly believe CarGurus is more favorable than Weibo.

Earnings and Valuation

This table compares CarGurus and Weibo’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CarGurus N/A N/A N/A N/A N/A
Weibo $655.80 million 35.36 $108.02 million $1.18 88.84

Weibo has higher revenue and earnings than CarGurus.

Profitability

This table compares CarGurus and Weibo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CarGurus N/A N/A N/A
Weibo 26.85% 30.00% 20.97%

Insider & Institutional Ownership

62.5% of Weibo shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Weibo beats CarGurus on 7 of the 8 factors compared between the two stocks.

About CarGurus

CarGurus, Inc. is an online automotive marketplace connecting buyers and sellers of new and used cars. Using proprietary technology, search algorithms, and data analytics. The Company’s marketplace empowers users with unbiased third-party validation on pricing and dealer reputation as well as other information that aids them in finding Great Deals from Great Dealers. In addition to the United States, the Company operates online marketplaces in Canada, the United Kingdom, and Germany. The Company’s products include Consumer Marketplace, Dealer Marketplace, Dealer Dashboard, Dealer Advertising and Customer Acquisition Products, Auto Manufacturer and Other Advertiser Products.

About Weibo

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).

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