Head-To-Head Analysis: ZipLink (OTCMKTS:ZIPL) and TrueCar (NASDAQ:TRUE)

ZipLink (OTCMKTS:ZIPL) and TrueCar (NASDAQ:TRUE) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for ZipLink and TrueCar, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ZipLink	0	0	0	0	0.00
TrueCar	2	5	0	0	1.71

TrueCar has a consensus price target of $2.65, suggesting a potential upside of 21.00%. Given TrueCar’s stronger consensus rating and higher probable upside, analysts clearly believe TrueCar is more favorable than ZipLink.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ZipLink	N/A	N/A	N/A	N/A	N/A
TrueCar	$175.60 million	1.11	-$31.05 million	($0.22)	-9.95

ZipLink has higher earnings, but lower revenue than TrueCar.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ZipLink	N/A	N/A	N/A
TrueCar	-10.27%	-23.76%	-18.02%

Insider & Institutional Ownership

79.4% of TrueCar shares are owned by institutional investors. 57.5% of ZipLink shares are owned by insiders. Comparatively, 3.9% of TrueCar shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

About ZipLink

This record represents the public shell of ZipLink, Inc. In November 2000, ZipLink, Inc. suspended its operations and announced the lay off of substantially all of its employees except those necessary to wind down operations. Ziplink, Inc. operated as a wholesale connectivity provider in North America for the Business-to-Business marketplace, including Internet service providers, competitive local exchange carriers, Web appliance vendors, and PC manufacturers and distributors, as of September 30, 2000. ZipLink also offered a range of Internet connectivity services for Internet appliances, including Internet access and subscriber authentication. The company was founded in 1995 and is based in Lowell, Massachusetts.

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.