Contrasting Virco Manufacturing (NASDAQ:VIRC) & ACV Auctions (NYSE:ACVA)

Virco Manufacturing (NASDAQ:VIRC) and ACV Auctions (NYSE:ACVA) are both small-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Profitability

This table compares Virco Manufacturing and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Virco Manufacturing	-1.31%	-2.34%	-1.42%
ACV Auctions	-7.88%	-6.01%	-2.22%

Valuation & Earnings

This table compares Virco Manufacturing and ACV Auctions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Virco Manufacturing	$191.97 million	0.52	$2.57 million	($0.16)	-39.53
ACV Auctions	$759.61 million	1.55	-$66.14 million	($0.36)	-19.24

Virco Manufacturing has higher earnings, but lower revenue than ACV Auctions. Virco Manufacturing is trading at a lower price-to-earnings ratio than ACV Auctions, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

31.0% of Virco Manufacturing shares are owned by institutional investors. Comparatively, 88.5% of ACV Auctions shares are owned by institutional investors. 16.9% of Virco Manufacturing shares are owned by insiders. Comparatively, 4.4% of ACV Auctions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Virco Manufacturing has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, ACV Auctions has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Virco Manufacturing and ACV Auctions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Virco Manufacturing	1	1	0	0	1.50
ACV Auctions	3	4	6	2	2.47

ACV Auctions has a consensus price target of $9.50, suggesting a potential upside of 37.18%. Given ACV Auctions’ stronger consensus rating and higher probable upside, analysts clearly believe ACV Auctions is more favorable than Virco Manufacturing.

Summary

ACV Auctions beats Virco Manufacturing on 9 of the 15 factors compared between the two stocks.

About Virco Manufacturing

Virco Mfg. Corporation engages in the design, production, and distribution of furniture in the United States and Canada. The company offers seating products, including 4-leg chairs, cantilever chairs, mobile task chairs and lab stools, tablet armchairs, steel-frame and floor rockers, series stools, hard plastic seating, folding and upholstered stack chairs, and plastic stack and upholstered ergonomic chairs. It also provides activity, butcher block, folding, office, technology, and mobile tables; desks and workstations, and instructor media stations and towers; chair desks and combo units, tablet arm and caster units, mobile workstations, student desks, and returns and credenzas; and computer furniture solutions. In addition, the company provides administrative office furniture, including desks, returns, bookcases, and other items, as well as steel storage cabinets, wardrobe tower cabinets, file credenzas, and mobile pedestals; laboratory furniture comprising steel-based science tables, table bases, lab stools, and wood-frame science tables; mobile furniture, such as mobile tables, mobile cabinets, and mobile chairs for school settings and offices; and handling and storage equipment, and stackable storage trucks. It serves public and private educational institutions, charter schools, convention centers and arenas, hospitality providers, government facilities, and places of worship through its sales and support teams, and dealers' network. Virco Mfg. Corporation was incorporated in 1950 and is headquartered in Torrance, California.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.