Trivago (TRVG) vs. CarGurus (CARG) Head to Head Review

Trivago (NASDAQ: TRVG) and CarGurus (NASDAQ:CARG) are both mid-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Earnings & Valuation

This table compares Trivago and CarGurus’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Trivago $834.68 million 3.45 -$56.08 million ($0.01) -820.00
CarGurus N/A N/A N/A ($0.21) -146.29

CarGurus has lower revenue, but higher earnings than Trivago. Trivago is trading at a lower price-to-earnings ratio than CarGurus, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trivago 1 8 1 0 2.00
CarGurus 0 4 1 0 2.20

Trivago presently has a consensus target price of $13.40, suggesting a potential upside of 63.41%. CarGurus has a consensus target price of $29.50, suggesting a potential downside of 3.97%. Given Trivago’s higher possible upside, equities analysts plainly believe Trivago is more favorable than CarGurus.

Profitability

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

Net Margins Return on Equity Return on Assets
Trivago -2.68% -3.09% -2.83%
CarGurus N/A N/A N/A

Institutional & Insider Ownership

8.2% of Trivago shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

CarGurus beats Trivago on 5 of the 9 factors compared between the two stocks.

About Trivago

Trivago NV is a company based in the Netherlands that operates an online hotel search platform. The platform allows users to search for, compare and book hotels. It gathers information from various third parties’ platforms and provides information about the hotel, pictures, ratings, reviews and filters, such as price, location and extra options. The Company offers access to approximately 1.3 million hotels in over 190 countries via more than 50 localized websites and applications in various languages. The Company also offers marketing tools and services to hotels and hotel chains, as well as to online travel agencies and advertisers, among others. Its principal executive offices are located in Germany.

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.

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