Vroom (NASDAQ:VRM – Get Free Report) and Cenntro (NASDAQ:CENN – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.
Risk & Volatility
Vroom has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Cenntro has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.
Valuation & Earnings
This table compares Vroom and Cenntro”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vroom | $178.83 million | 0.38 | -$7.96 million | ($8.64) | -1.49 |
| Cenntro | $18.08 million | 0.33 | -$72.98 million | ($30.54) | -0.13 |
Vroom has higher revenue and earnings than Cenntro. Vroom is trading at a lower price-to-earnings ratio than Cenntro, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
25.8% of Vroom shares are owned by institutional investors. 1.5% of Vroom shares are owned by company insiders. Comparatively, 16.2% of Cenntro shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Vroom and Cenntro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vroom | -4.45% | -4.47% | -0.64% |
| Cenntro | -403.73% | -102.15% | -62.49% |
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Vroom and Cenntro, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
| Cenntro | 1 | 0 | 0 | 0 | 1.00 |
Summary
Vroom beats Cenntro on 8 of the 11 factors compared between the two stocks.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
About Cenntro
Cenntro Inc. engages in the design, development, and manufacture of electric light and medium-duty commercial vehicles in Europe, Asia, and the United States. Its purpose-built electric commercial vehicles are designed to serve various fleet and municipal organizations in support of city services, last-mile delivery, and other commercial applications. The company sells its products under the Metro, Logistar, Logimax, Avantier, Teemak, and Antric One names. Cenntro Inc. was founded in 2013 and is headquartered in Freehold, New Jersey.
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