TrueCar (NASDAQ:TRUE) vs. CyberAgent (OTCMKTS:CYGIY) Head to Head Survey

TrueCar (NASDAQ:TRUE) and CyberAgent (OTCMKTS:CYGIY) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.

Insider & Institutional Ownership

79.4% of TrueCar shares are held by institutional investors. 3.9% of TrueCar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares TrueCar and CyberAgent’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TrueCar	-15.95%	-24.73%	-18.73%
CyberAgent	2.93%	12.20%	6.07%

Earnings and Valuation

This table compares TrueCar and CyberAgent”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrueCar	$175.60 million	0.86	-$31.05 million	($0.34)	-5.03
CyberAgent	$5.61 billion	1.08	$108.86 million	$0.15	40.00

CyberAgent has higher revenue and earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than CyberAgent, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for TrueCar and CyberAgent, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrueCar	2	2	2	0	2.00
CyberAgent	0	0	0	0	0.00

TrueCar currently has a consensus target price of $3.19, indicating a potential upside of 86.40%. Given TrueCar’s stronger consensus rating and higher probable upside, equities analysts plainly believe TrueCar is more favorable than CyberAgent.

Risk and Volatility

TrueCar has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500. Comparatively, CyberAgent has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Summary

CyberAgent beats TrueCar on 8 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 CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.