Care.com (NYSE: CRCM) and StoneMor Partners (NYSE:STON) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.
Earnings & Valuation
This table compares Care.com and StoneMor Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Care.com||$174.09 million||2.81||$10.66 million||$0.27||59.48|
|StoneMor Partners||$326.23 million||0.72||-$32.49 million||N/A||N/A|
Volatility and Risk
Care.com has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, StoneMor Partners has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500.
This is a summary of current ratings and price targets for Care.com and StoneMor Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Care.com presently has a consensus price target of $18.00, indicating a potential upside of 12.08%. StoneMor Partners has a consensus price target of $7.00, indicating a potential upside of 13.64%. Given StoneMor Partners’ higher probable upside, analysts plainly believe StoneMor Partners is more favorable than Care.com.
Insider and Institutional Ownership
72.5% of Care.com shares are held by institutional investors. Comparatively, 41.6% of StoneMor Partners shares are held by institutional investors. 24.7% of Care.com shares are held by company insiders. Comparatively, 9.8% of StoneMor Partners shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Care.com and StoneMor Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
StoneMor Partners pays an annual dividend of $0.33 per share and has a dividend yield of 5.4%. Care.com does not pay a dividend.
Care.com beats StoneMor Partners on 10 of the 13 factors compared between the two stocks.
Care.com Company Profile
Care.com, Inc. is an online marketplace for finding and managing family care. As of December 31, 2016, the Company had 22.8 million members, including 12.9 million families and 9.9 million caregivers, spanning 19 countries. Its consumer matching solutions allow families to search for, qualify, vet, connect with and select caregivers. It also provides caregivers with solutions to create personal profiles, describe their skills and experience, and otherwise differentiate and market themselves in a fragmented marketplace. In addition to consumer matching solutions, the Company offers its members products and services to facilitate their interaction with caregivers. It serves employers by providing access to certain of its products and services to employer-sponsored families. In addition, it serves care-related businesses, such as day care centers, nanny agencies and home care agencies, willing to market their services to its care-seeking families and recruit its caregiver members.
StoneMor Partners Company Profile
StoneMor Partners L.P., together with its subsidiaries, owns and operates cemeteries and funeral homes in the United States. It operates through two segments, Cemetery Operations and Funeral Home Operations. The company's cemetery products and services include interment rights, such as burial lots, lawn crypts, mausoleum crypts, cremation niches, and perpetual care rights; merchandise comprising burial vaults, caskets, grave markers and grave marker bases, and memorials; and installation services for burial vaults, caskets, and other cemetery merchandise, as well as other service items. It also provides receptacles for cremated remains that include urns, and the inurnment of cremated remains in niches or scattering gardens; and funeral home services, such as family consultation, the removal and preparation of remains, and the use of funeral home facilities for visitation and prayer services. As of September 15, 2017, the company owned and operated 316 cemeteries in 27 states and Puerto Rico; and 98 funeral homes in 18 states and Puerto Rico. StoneMor GP LLC serves as the general partner of StoneMor Partners L.P. The company was founded in 1999 and is headquartered in Trevose, Pennsylvania.
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