Angie’s List (NASDAQ: ANGI) and Care.com (NYSE:CRCM) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitabiliy, analyst recommendations and dividends.
Risk & Volatility
Angie’s List has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Care.com has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Angie’s List and Care.com, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Angie’s List | 1 | 5 | 1 | 0 | 2.00 |
| Care.com | 0 | 2 | 1 | 0 | 2.33 |
Angie’s List currently has a consensus target price of $9.31, suggesting a potential downside of 27.02%. Care.com has a consensus target price of $12.17, suggesting a potential downside of 18.78%. Given Care.com’s stronger consensus rating and higher probable upside, analysts clearly believe Care.com is more favorable than Angie’s List.
Profitability
This table compares Angie’s List and Care.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Angie’s List | -0.35% | -41.36% | -0.67% |
| Care.com | 0.67% | 3.79% | 1.82% |
Insider & Institutional Ownership
71.4% of Angie’s List shares are owned by institutional investors. Comparatively, 72.1% of Care.com shares are owned by institutional investors. 18.2% of Angie’s List shares are owned by insiders. Comparatively, 24.7% of Care.com shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Angie’s List and Care.com’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Angie’s List | $312.61 million | 2.44 | $11.14 million | ($0.02) | -638.00 |
| Care.com | $165.85 million | 2.66 | $7.41 million | ($0.04) | -374.41 |
Angie’s List has higher revenue and earnings than Care.com. Angie’s List is trading at a lower price-to-earnings ratio than Care.com, indicating that it is currently the more affordable of the two stocks.
Summary
Care.com beats Angie’s List on 8 of the 12 factors compared between the two stocks.
About Angie’s List
Angie’s List, Inc. operates a national local services consumer review service and marketplace. As of December 31, 2016, the Company helped facilitate transactions between over five million members and its collection of service providers in over 700 categories of service nationwide. Its tools, services and content across multiple platforms enables consumers to research, shop for and purchase local services for needs, as well as rate and review the providers of these services across the United States. Its ratings and reviews assist its members in identifying and hiring the provider for their local service needs. Its services include member services and service provider services. It compiles a breadth of relevant, member-generated ratings and reviews that provide insights, which could otherwise be difficult for consumers to obtain on their own. Its primary source of service provider revenue is term-based sales of advertising to service providers.
About Care.com
Care.com, Inc. is an online marketplace for finding and managing family care. As of December 31, 2016, the Company had 22.8 million members, including 12.9 million families and 9.9 million caregivers, spanning 19 countries. Its consumer matching solutions allow families to search for, qualify, vet, connect with and select caregivers. It also provides caregivers with solutions to create personal profiles, describe their skills and experience, and otherwise differentiate and market themselves in a fragmented marketplace. In addition to consumer matching solutions, the Company offers its members products and services to facilitate their interaction with caregivers. It serves employers by providing access to certain of its products and services to employer-sponsored families. In addition, it serves care-related businesses, such as day care centers, nanny agencies and home care agencies, willing to market their services to its care-seeking families and recruit its caregiver members.
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