Critical Analysis: Akso Health Group (NASDAQ:AHG) and ACV Auctions (NASDAQ:ACVA)

Akso Health Group (NASDAQ:AHG) and ACV Auctions (NASDAQ:ACVA) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Akso Health Group and ACV Auctions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akso Health Group	0	0	0	0	0.00
ACV Auctions	0	2	8	0	2.80

ACV Auctions has a consensus price target of $23.50, suggesting a potential upside of 13.36%. Given ACV Auctions’ stronger consensus rating and higher probable upside, analysts clearly believe ACV Auctions is more favorable than Akso Health Group.

Profitability

This table compares Akso Health Group and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akso Health Group	N/A	N/A	N/A
ACV Auctions	-12.89%	-12.11%	-5.52%

Insider & Institutional Ownership

1.2% of Akso Health Group shares are owned by institutional investors. Comparatively, 88.6% of ACV Auctions shares are owned by institutional investors. 8.5% of ACV Auctions shares are owned by 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.

Earnings and Valuation

This table compares Akso Health Group and ACV Auctions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akso Health Group	$2.41 million	58.95	-$9.46 million	N/A	N/A
ACV Auctions	$481.23 million	7.22	-$75.26 million	($0.47)	-44.11

Akso Health Group has higher earnings, but lower revenue than ACV Auctions.

Risk & Volatility

Akso Health Group has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Comparatively, ACV Auctions has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500.

Summary

ACV Auctions beats Akso Health Group on 7 of the 12 factors compared between the two stocks.

About Akso Health Group

Akso Health Group operates a social e-commerce mobile platform in China. The company operates Xiaobai Maimai App, which offers food and beverage products, wine, cosmetic products, fashion and apparel, entertainment products, housewares, home appliances, and cost-saving promotions at petrol gas stations. It also offers consultancy and information technology support services; provides health treatment services; sells medical devices; and trades in branded products, as well as promotes products. The company was formerly known as Xiaobai Maimai Inc. and changed its name to Akso Health Group in December 2021. Akso Health Group was founded in 2014 and is headquartered in Qingdao, China.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company’s marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green’s seller assurance service for against claims related to defects in the vehicle. It also provides remarketing centers, which offers value-added services, such as vehicle reconditioning and storage for dealers and commercial partners. In addition, the company offers data services, including True360 report, which provides cosmetic and structural vehicle assessments integrated into vehicle history reports for dealer to make wholesale and retail transaction decisions on and off the marketplace; ACV market report provides transaction data and condition reports for comparable used vehicles, including pricing data from third-party sources and allows dealers to determine pricing and valuation strategies for used vehicles; and ACV MAX inventory management software enables dealers to manage their inventory and set pricing while turning vehicles. Further, it provides data and technology through inspection, such as condition reports, virtual lift solutions, apex device, and vehicle intelligence platform; and marketplace enablement, comprising MyACV application, private marketplaces, operations automation, live appraisals, and programmatic buying service. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.