Analyzing CarGurus (NASDAQ:CARG) & Carbon Revolution Public (NASDAQ:CREV)

Carbon Revolution Public (NASDAQ:CREV) and CarGurus (NASDAQ:CARG) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Risk & Volatility

Carbon Revolution Public has a beta of 2.01, suggesting that its stock price is 101% more volatile than the S&P 500. Comparatively, CarGurus has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Carbon Revolution Public and CarGurus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carbon Revolution Public	0	0	0	0	0.00
CarGurus	0	3	7	1	2.82

CarGurus has a consensus price target of $36.95, indicating a potential upside of 18.52%. Given CarGurus’ stronger consensus rating and higher probable upside, analysts clearly believe CarGurus is more favorable than Carbon Revolution Public.

Earnings & Valuation

This table compares Carbon Revolution Public and CarGurus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carbon Revolution Public	$71.46 million	0.06	-$146.44 million	N/A	N/A
CarGurus	$894.38 million	3.64	$20.97 million	$0.35	89.09

CarGurus has higher revenue and earnings than Carbon Revolution Public.

Insider & Institutional Ownership

1.2% of Carbon Revolution Public shares are held by institutional investors. Comparatively, 86.9% of CarGurus shares are held by institutional investors. 0.2% of Carbon Revolution Public shares are held by company insiders. Comparatively, 17.2% of CarGurus shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Carbon Revolution Public and CarGurus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carbon Revolution Public	N/A	N/A	N/A
CarGurus	4.28%	32.54%	20.08%

Summary

CarGurus beats Carbon Revolution Public on 12 of the 13 factors compared between the two stocks.

About Carbon Revolution Public

Carbon Revolution Public Limited Company manufactures and sells carbon fibre wheels to original equipment vehicle manufacturers for the automotive industry worldwide. It also provides associated engineering services; and sells tools. The company was founded in 2007 and is based in Dublin, Ireland.

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.