Head-To-Head Review: CarGurus (CARG) vs. Its Peers

CarGurus (NASDAQ: CARG) is one of 45 publicly-traded companies in the “Internet Services” industry, but how does it weigh in compared to its competitors? We will compare CarGurus to similar businesses based on the strength of its dividends, profitability, risk, institutional ownership, analyst recommendations, valuation and earnings.

Institutional & Insider Ownership

73.6% of shares of all “Internet Services” companies are held by institutional investors. 20.9% of shares of all “Internet Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for CarGurus and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CarGurus 0 4 1 0 2.20
CarGurus Competitors 424 1644 2756 95 2.51

CarGurus currently has a consensus price target of $29.50, indicating a potential downside of 1.04%. As a group, “Internet Services” companies have a potential downside of 2.11%. Given CarGurus’ higher probable upside, equities research analysts plainly believe CarGurus is more favorable than its competitors.

Valuation & Earnings

This table compares CarGurus and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CarGurus N/A N/A -141.95
CarGurus Competitors $943.06 million $113.10 million 593.51

CarGurus’ competitors have higher revenue and earnings than CarGurus. CarGurus is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares CarGurus and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CarGurus N/A N/A N/A
CarGurus Competitors 1.53% 38.42% 7.50%

Summary

CarGurus competitors beat CarGurus on 10 of the 11 factors compared.

CarGurus Company Profile

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.

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