Critical Contrast: Autoweb (AUTO) and Match Group (MTCH)

Autoweb (NASDAQ:AUTO) and Match Group (NASDAQ:MTCH) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Profitability

This table compares Autoweb and Match Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autoweb -78.46% -20.99% -15.13%
Match Group 21.24% 60.95% 15.56%

Institutional and Insider Ownership

38.8% of Autoweb shares are owned by institutional investors. Comparatively, 23.3% of Match Group shares are owned by institutional investors. 30.6% of Autoweb shares are owned by insiders. Comparatively, 7.0% of Match Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Autoweb has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, Match Group has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Autoweb and Match Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autoweb 0 3 0 0 2.00
Match Group 0 5 10 0 2.67

Autoweb currently has a consensus target price of $4.60, indicating a potential upside of 130.00%. Match Group has a consensus target price of $52.31, indicating a potential upside of 29.89%. Given Autoweb’s higher probable upside, research analysts plainly believe Autoweb is more favorable than Match Group.

Valuation and Earnings

This table compares Autoweb and Match Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Autoweb $142.13 million 0.18 -$64.96 million $0.29 6.90
Match Group $1.33 billion 8.42 $350.14 million $0.52 77.44

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

Summary

Match Group beats Autoweb on 10 of the 14 factors compared between the two stocks.

Autoweb Company Profile

AutoWeb, Inc. operates as a digital marketing company for the automotive industry in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its programs. The company's products include new vehicle lead program, which allows consumers to submit requests for pricing and availability of specific makes and models; and used vehicle lead program, which allows consumers to search for used vehicles according to search parameters, such as price, make, model, mileage, year, and location of the vehicle. The company's products and services also comprise WebLeads+ that offers various coupon options, which display marketing messages to consumers visiting the dealer's Website; and Payment Pro, a dealer Website conversion tool that offers consumers real-time online monthly payment information, as well as sells fixed placement advertising across its Website to automotive advertisers. It owns and operates automotive Websites that offers consumers with the information and tools to aid them with their automotive purchase decisions; an automotive search engine that enables manufactures and dealers to optimize advertising campaigns; AutoWeb Traffic Product, a pay-per-click advertising program that offer targeted offers to consumers based on make, model, and geographic location; and AutoWeb consumer traffic referral product that engages car buyers from the AutoWeb's network of automotive Websites to present them with offers based on their make and model of interest, as well as geographic location. The company was formerly known as Autobytel Inc. and changed its name to AutoWeb, Inc. in October 2017. AutoWeb, Inc. was founded in 1995 and is headquartered in Irvine, California.

Match Group Company Profile

Match Group, Inc. provides dating products. It operates a portfolio of brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, and Pairs. Match Group, Inc. offers its dating products through its Websites and applications in 42 languages approximately in 190 countries. The company was incorporated in 2009 and is headquartered in Dallas, Texas. Match Group, Inc. is a subsidiary of IAC/InterActiveCorp.

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