Critical Review: D-MARKET Electronic Services & Trading (NASDAQ:HEPS) & Token Cat (NASDAQ:TC)

Token Cat (NASDAQ:TC) and D-MARKET Electronic Services & Trading (NASDAQ:HEPS) are both small-cap retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Insider and Institutional Ownership

8.9% of Token Cat shares are owned by institutional investors. Comparatively, 40.5% of D-MARKET Electronic Services & Trading shares are owned by institutional investors. 0.5% of Token Cat shares are owned by insiders. Comparatively, 36.3% of D-MARKET Electronic Services & Trading shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Token Cat has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, D-MARKET Electronic Services & Trading has a beta of 2.3, suggesting that its share price is 130% more volatile than the S&P 500.

Profitability

This table compares Token Cat and D-MARKET Electronic Services & Trading’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Token Cat	N/A	N/A	N/A
D-MARKET Electronic Services & Trading	-5.42%	-113.69%	-10.63%

Earnings & Valuation

This table compares Token Cat and D-MARKET Electronic Services & Trading”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Token Cat	$6.74 million	2.96	-$25.76 million	N/A	N/A
D-MARKET Electronic Services & Trading	$1.74 billion	0.54	-$48.95 million	($0.25)	-10.58

Token Cat has higher earnings, but lower revenue than D-MARKET Electronic Services & Trading.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Token Cat and D-MARKET Electronic Services & Trading, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Token Cat	1	0	0	0	1.00
D-MARKET Electronic Services & Trading	1	2	0	0	1.67

D-MARKET Electronic Services & Trading has a consensus target price of $3.07, suggesting a potential upside of 16.07%. Given D-MARKET Electronic Services & Trading’s stronger consensus rating and higher possible upside, analysts plainly believe D-MARKET Electronic Services & Trading is more favorable than Token Cat.

Summary

D-MARKET Electronic Services & Trading beats Token Cat on 6 of the 11 factors compared between the two stocks.

About Token Cat

TuanChe Limited, through its subsidiaries, operates as an omni-channel automotive marketplace in China and internationally. It organizes auto shows and special promotion events; and provides integrated marketing solutions to industry customers, which include automakers, franchised dealerships, secondary dealers, and automotive service providers, as well as enable interactions between participants on both sides of a potential transaction. The company also offers business and technical support, and consulting services; online marketing services through various online platforms, including tuanche.com website, WeChat account, WeChat mini-program, mobile applications, and Cheshangtong, a SaaS product; and referral services for commercial bank to enhance its auto loan business. The company has a strategic partnership with Alibaba Group's Tmall; and Beijing Easyhome Furnishing Chain Group Co., Ltd. TuanChe Limited was founded in 2010 and is headquartered in Beijing, China.

About D-MARKET Electronic Services & Trading

D-Market Elektronik Hizmetler ve Ticaret A.S. operates e-commerce platforms in Turkey. The company operates www.hepsiburada.com, a retail website that provides its retail customers a range of merchandise, including electronics and non-electronics products, such as books, sports, toys, kids and baby products, cosmetics, furniture, etc. It also offers Hepsiburada Market, an app-in-app initiative and on-demand delivery service that delivers groceries and water; HepsiJet that provides last-mile delivery services; HepsiLojistik, which offers storage and fulfillment services; HepsiMat, an offline network of pick-up and drop-off point; HepsiAd that provides advertising service; HepsiGlobal for discovering and purchasing products from international merchants online; Hepsipay, which offers an e-money and payment services; and Hepsiburada Seyahat for buying airline tickets online. The company was incorporated in 2000 and is headquartered in Istanbul, Turkey.