Care.com (NYSE: CRCM) and Cars.com (NYSE:CARS) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.
Institutional & Insider Ownership
72.6% of Care.com shares are held by institutional investors. 35.9% of Care.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Care.com and Cars.com, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Care.com presently has a consensus target price of $18.00, suggesting a potential downside of 3.28%. Cars.com has a consensus target price of $34.50, suggesting a potential upside of 16.08%. Given Cars.com’s stronger consensus rating and higher probable upside, analysts clearly believe Cars.com is more favorable than Care.com.
Earnings & Valuation
This table compares Care.com and Cars.com’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Care.com||$174.09 million||3.26||$10.66 million||$0.22||84.59|
|Cars.com||$626.26 million||3.40||$224.44 million||N/A||N/A|
Cars.com has higher revenue and earnings than Care.com.
This table compares Care.com and Cars.com’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cars.com beats Care.com on 9 of the 11 factors compared between the two stocks.
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.
Cars.com Inc. owns a digital automotive marketplace business (Cars.com). Cars.com is an online research destination for car shoppers. The Company is engaged in the sale of online subscription advertising products targeting car dealerships. It offers a suite of products and services targeting the automotive needs of its buyer and seller customers. Cars.com offers a digital automotive marketplace search engine that helps car buyers to make informed purchasing decisions and helps sellers to engage with a portion of their target customer base. This online automotive marketplace service connects buyers and sellers across five Websites: Cars.com, Auto.com, DealerRater.com, NewCars.com and PickupTrucks.com. Its automotive marketplace products also include credible user and automotive and dealer reviews. It is also engaged in the sale of display advertising to national advertisers. Car buyers and car owners interface with Cars.com primarily through the Cars.com sites and mobile applications.
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