Comparing Rightside Group (NAME) & Cars.com (CARS)

Rightside Group (NASDAQ: NAME) and Cars.com (NYSE:CARS) are both small-cap technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Valuation and Earnings

This table compares Rightside Group and Cars.com’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rightside Group N/A N/A N/A ($2.09) -5.08
Cars.com $633.10 million 3.19 $176.37 million $1.70 16.59

Cars.com has higher revenue and earnings than Rightside Group. Rightside Group is trading at a lower price-to-earnings ratio than Cars.com, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Rightside Group and Cars.com, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rightside Group 0 1 0 0 2.00
Cars.com 0 1 2 0 2.67

Rightside Group presently has a consensus target price of $10.60, indicating a potential downside of 0.09%. Cars.com has a consensus target price of $35.33, indicating a potential upside of 25.30%. Given Cars.com’s stronger consensus rating and higher probable upside, analysts plainly believe Cars.com is more favorable than Rightside Group.

Profitability

This table compares Rightside Group and Cars.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rightside Group -39.04% -15.14% -8.53%
Cars.com 19.24% 8.18% 6.29%

Insider & Institutional Ownership

68.4% of Rightside Group shares are owned by institutional investors. 2.4% of Rightside Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Cars.com beats Rightside Group on 9 of the 11 factors compared between the two stocks.

Rightside Group Company Profile

Rightside Group, Ltd. is a provider of domain name services that enable businesses and consumers to find, establish and maintain their digital address. The Company is a registrar, offering domain name registration and other related services to resellers and domain name registrants. It provides infrastructure services through its eNom brand. It has over 16.5 million domain names under management. It has a portfolio of over 40 generic Top Level Domains (gTLDs) acquired through Internet Corporation for Assigned Names and Numbers (ICANN)’s expansion of new gTLDs. It has launched all of its gTLDs, including .NEWS, .LIVE, and .FAMILY, into general availability in the marketplace. Its registry services business builds a distribution network of over 125 ICANN accredited registrars, including GoDaddy, eNom and Name.com, as well as other complementary distribution partners, such as Website builders and e-mail service providers, that offer its gTLD domain names to businesses and consumers.

Cars.com Company Profile

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.

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