TrueCar (NASDAQ:TRUE – Get Free Report) and Vimeo (NASDAQ:VMEO – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.
Earnings and Valuation
This table compares TrueCar and Vimeo’s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
TrueCar | $158.71 million | 1.95 | -$49.77 million | ($0.40) | -8.45 |
Vimeo | $417.21 million | 1.49 | $22.03 million | $0.17 | 21.65 |
Vimeo has higher revenue and earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than Vimeo, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Institutional and Insider Ownership
79.4% of TrueCar shares are owned by institutional investors. Comparatively, 85.0% of Vimeo shares are owned by institutional investors. 3.3% of TrueCar shares are owned by insiders. Comparatively, 6.3% of Vimeo shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares TrueCar and Vimeo’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
TrueCar | -22.15% | -17.26% | -13.38% |
Vimeo | 6.88% | 7.71% | 4.69% |
Analyst Recommendations
This is a summary of current recommendations for TrueCar and Vimeo, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
TrueCar | 0 | 1 | 1 | 0 | 2.50 |
Vimeo | 0 | 2 | 0 | 0 | 2.00 |
TrueCar currently has a consensus price target of $4.00, suggesting a potential upside of 18.34%. Vimeo has a consensus price target of $4.25, suggesting a potential upside of 15.49%. Given TrueCar’s stronger consensus rating and higher probable upside, analysts plainly believe TrueCar is more favorable than Vimeo.
Summary
Vimeo beats TrueCar on 10 of the 14 factors compared between the two stocks.
About TrueCar
TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. In addition, it provides TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. The company was incorporated in 2005 and is headquartered in Santa Monica, California.
About Vimeo
Vimeo, Inc., together with its subsidiaries, provides video software solutions worldwide. It provides the video tools through a software-as-a-service model, which enables its users to create, collaborate, and communicate with video on a single platform. The company also offers over-the-top OTT streaming and monetization services; AI-driven video creation and editing tools; and interactive and shoppable video tools. It serves large organizations, small businesses, creative professionals, marketers, and digital agencies. The company was founded in 2004 and is headquartered in New York, New York.
Receive News & Ratings for TrueCar Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for TrueCar and related companies with MarketBeat.com's FREE daily email newsletter.