CarGurus (NASDAQ:CARG – Get Free Report) and WISeKey International (NASDAQ:WKEY – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Profitability
This table compares CarGurus and WISeKey International’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
CarGurus | -5.57% | 11.06% | 7.25% |
WISeKey International | N/A | N/A | N/A |
Earnings and Valuation
This table compares CarGurus and WISeKey International”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
CarGurus | $877.03 million | 3.76 | $31.10 million | $0.28 | 113.07 |
WISeKey International | $30.92 million | 0.46 | -$15.36 million | N/A | N/A |
Risk and Volatility
CarGurus has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, WISeKey International has a beta of 2.04, meaning that its share price is 104% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for CarGurus and WISeKey International, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
CarGurus | 0 | 3 | 7 | 0 | 2.70 |
WISeKey International | 0 | 0 | 1 | 0 | 3.00 |
CarGurus currently has a consensus target price of $29.35, indicating a potential downside of 7.30%. WISeKey International has a consensus target price of $4.00, indicating a potential upside of 89.57%. Given WISeKey International’s stronger consensus rating and higher probable upside, analysts plainly believe WISeKey International is more favorable than CarGurus.
Institutional and Insider Ownership
86.9% of CarGurus shares are held by institutional investors. Comparatively, 0.3% of WISeKey International shares are held by institutional investors. 17.2% of CarGurus shares are held by company insiders. Comparatively, 33.5% of WISeKey International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary
CarGurus beats WISeKey International on 7 of the 12 factors compared between the two stocks.
About CarGurus
CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers. It also offers dealer and non-dealer advertising products for its websites and social media platforms. The company operates online marketplaces under the CarGurus brand in the United States, Canada, and the United Kingdom; Autolist and CarOffer brands in the United States; and PistonHeads brand in the United Kingdom. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.
About WISeKey International
WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.
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