CarGurus (CARG) versus Its Competitors Head-To-Head Review

CarGurus (NASDAQ:CARG) is one of 192 public companies in the “Interactive Media & Services” industry, but how does it contrast to its rivals? We will compare CarGurus to related companies based on the strength of its institutional ownership, risk, analyst recommendations, dividends, valuation, profitability and earnings.

Valuation and Earnings

This table compares CarGurus and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
CarGurus	$906.98 million	$155.90 million	17.58
CarGurus Competitors	$13.12 billion	$3.48 billion	8.13

CarGurus’ rivals have higher revenue and earnings than CarGurus. CarGurus is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

CarGurus has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, CarGurus’ rivals have a beta of 1.88, indicating that their average share price is 88% more volatile than the S&P 500.

Profitability

This table compares CarGurus and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CarGurus	18.51%	68.43%	34.69%
CarGurus Competitors	-158.12%	-18.08%	4.01%

Analyst Ratings

This is a breakdown of recent recommendations for CarGurus and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CarGurus	0	5	8	1	2.71
CarGurus Competitors	1450	6039	11562	443	2.56

CarGurus currently has a consensus target price of $40.25, indicating a potential upside of 15.63%. As a group, “Interactive Media & Services” companies have a potential upside of 31.71%. Given CarGurus’ rivals higher probable upside, analysts plainly believe CarGurus has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

86.9% of CarGurus shares are owned by institutional investors. Comparatively, 41.2% of shares of all “Interactive Media & Services” companies are owned by institutional investors. 18.2% of CarGurus shares are owned by insiders. Comparatively, 24.0% of shares of all “Interactive Media & Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

CarGurus beats its rivals on 7 of the 13 factors compared.

About CarGurus

CarGurus, Inc. operates an online automotive marketplace that helps consumers research and compare vehicles and connect with dealerships. Its website and mobile apps feature new and used vehicle listings, search tools, vehicle information and pricing insights designed to help shoppers evaluate available cars. The company also provides dealerships with products and services to market inventory and engage with potential buyers through its platform. CarGurus was founded in 2006 by Langley Steinert, who previously co-founded TripAdvisor, and is headquartered in Cambridge, Massachusetts.