CarGurus (NASDAQ:CARG) and Castlight Health (NYSE:CSLT) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.
Valuation and Earnings
This table compares CarGurus and Castlight Health’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CarGurus||$588.92 million||4.63||$42.15 million||$0.38||63.64|
|Castlight Health||$143.31 million||0.88||-$40.00 million||($0.25)||-3.36|
Risk and Volatility
CarGurus has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Castlight Health has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Institutional & Insider Ownership
76.9% of CarGurus shares are held by institutional investors. Comparatively, 53.3% of Castlight Health shares are held by institutional investors. 24.4% of CarGurus shares are held by company insiders. Comparatively, 17.1% of Castlight Health shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares CarGurus and Castlight Health’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for CarGurus and Castlight Health, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CarGurus presently has a consensus target price of $29.63, indicating a potential upside of 22.49%. Castlight Health has a consensus target price of $1.42, indicating a potential upside of 68.65%. Given Castlight Health’s higher possible upside, analysts plainly believe Castlight Health is more favorable than CarGurus.
CarGurus beats Castlight Health on 13 of the 14 factors compared between the two stocks.
CarGurus Company Profile
CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States, Canada, the United Kingdom, Germany, Italy, and Spain. The company provides consumers an online automotive marketplace where they can search for new and used car listings from its dealers, as well as sell their car in the United States marketplace. Its marketplace connects dealers to a large audience of informed and engaged consumers. The company was founded in 2005 and is headquartered in Cambridge, Massachusetts.
Castlight Health Company Profile
Castlight Health, Inc. provides a software-as-a-service platform used for health benefits navigation for employees in the United States. Its platform matches employees to the resources their employers make available to them; managing a condition; and assists them to manage their benefits. The company also offers implementation, user and customer support, and marketplace services. It serves customers in a range of industries, including education, manufacturing, retail, technology, and government. The company was formerly known as Ventana Health Services and changed its name to Castlight Health, Inc. in April 2010. Castlight Health, Inc. was founded in 2008 and is headquartered in San Francisco, California.
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