Autohome (NYSE: ATHM) and TrueCar (NASDAQ:TRUE) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
This is a breakdown of current ratings and target prices for Autohome and TrueCar, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Autohome presently has a consensus price target of $58.33, suggesting a potential downside of 10.71%. TrueCar has a consensus price target of $18.50, suggesting a potential upside of 9.21%. Given TrueCar’s higher possible upside, analysts plainly believe TrueCar is more favorable than Autohome.
Volatility & Risk
Autohome has a beta of 2.17, indicating that its share price is 117% more volatile than the S&P 500. Comparatively, TrueCar has a beta of 3, indicating that its share price is 200% more volatile than the S&P 500.
Earnings & Valuation
This table compares Autohome and TrueCar’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Autohome||$958.29 million||7.91||$233.45 million||$1.87||34.94|
|TrueCar||$306.80 million||5.44||-$16.51 million||($0.35)||-48.40|
Autohome has higher revenue and earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than Autohome, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
40.2% of Autohome shares are owned by institutional investors. Comparatively, 91.7% of TrueCar shares are owned by institutional investors. 5.7% of Autohome shares are owned by company insiders. Comparatively, 15.5% of TrueCar shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Autohome and TrueCar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Autohome beats TrueCar on 8 of the 13 factors compared between the two stocks.
Autohome Inc. is an online destination for automobile consumers in China. The Company is engaged in the provision of online advertising and dealer subscription services in the People’s Republic of China (PRC). The Company, through its Websites, autohome.com.cn and che168.com, and mobile applications, delivers content to automobile buyers and owners. These services are offered to automakers and dealers, and advertising agencies that represent automakers and dealers in the automobile industry. The Company’s autohome.com.cn targets automobile consumers with a focus on new automobiles. The Company’s professionally produced content is created by editorial team and includes automobile-related articles and reviews, pricing trends in various local markets, and photos and video clips. Its database also includes new and used automobile listings and promotional information. Its dealer subscription services allow dealers to market their inventory and services through its Websites.
TrueCar, Inc. is an Internet-based information, technology, and communication services company. The Company has a data-driven online platform, which features market data and analytics. The Company-branded platform is available on its TrueCar Website and mobile applications. It customizes and operates its platform on a co-branded basis for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for a range of enterprises. The Company enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar Certified Dealers. Its network of over 13,000 TrueCar Certified Dealers consists primarily of new car franchises, as well as independent dealers selling used vehicles. Its subsidiary, ALG, Inc., provides forecasts and consulting services regarding determination of the residual value of an automobile at given future points in time.
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