Cars.com (NYSE:CARS – Get Free Report) and 1stdibs.com (NASDAQ:DIBS – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Profitability
This table compares Cars.com and 1stdibs.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cars.com | 3.73% | 18.12% | 8.07% |
| 1stdibs.com | -12.33% | -12.05% | -8.36% |
Institutional and Insider Ownership
89.2% of Cars.com shares are owned by institutional investors. Comparatively, 67.0% of 1stdibs.com shares are owned by institutional investors. 3.4% of Cars.com shares are owned by insiders. Comparatively, 24.2% of 1stdibs.com shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cars.com | $723.24 million | 0.77 | $20.05 million | $0.43 | 23.22 |
| 1stdibs.com | $89.62 million | 1.71 | -$13.67 million | ($0.31) | -13.97 |
Cars.com has higher revenue and earnings than 1stdibs.com. 1stdibs.com is trading at a lower price-to-earnings ratio than Cars.com, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Cars.com has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, 1stdibs.com has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for Cars.com and 1stdibs.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cars.com | 1 | 4 | 3 | 0 | 2.25 |
| 1stdibs.com | 1 | 0 | 1 | 0 | 2.00 |
Cars.com currently has a consensus price target of $14.67, indicating a potential upside of 46.89%. 1stdibs.com has a consensus price target of $7.00, indicating a potential upside of 61.66%. Given 1stdibs.com’s higher possible upside, analysts plainly believe 1stdibs.com is more favorable than Cars.com.
Summary
Cars.com beats 1stdibs.com on 11 of the 14 factors compared between the two stocks.
About Cars.com
Cars.com Inc., through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers. It also sells online subscription advertising products to car dealerships by its direct sales force, as well as through its affiliate sales channel. In addition, the company sells display advertising to national advertisers. Further, it offers online automotive marketplace service that connects buyers and sellers through Cars.com, Auto.com, DealerRater.com, NewCars.com, PickupTrucks.com, DealerInspire.com, and LaunchDigitalMarketing.com Websites. Its platform hosts approximately 4.9 million new and used vehicle listings and serves approximately 20,000 franchise and independent car dealers. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.
About 1stdibs.com
1stdibs.Com, Inc. operates an online marketplace for luxury design products worldwide. Its marketplace connects customers with sellers and makers of vintage, antique, and contemporary furniture; and home décor, jewelry, watches, art, and fashion products. The company was incorporated in 2000 and is headquartered in New York, New York.
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