CarGurus (NASDAQ:CARG) vs. Phoenix New Media (NYSE:FENG) Head to Head Survey

Phoenix New Media (NYSE:FENG) and CarGurus (NASDAQ:CARG) are both communication services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Valuation & Earnings

This table compares Phoenix New Media and CarGurus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Phoenix New Media	$828.75 million	0.02	$50,000.00	$0.36	4.03
CarGurus	$906.98 million	2.74	$155.90 million	$1.84	15.19

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

Volatility and Risk

Phoenix New Media has a beta of -0.18, meaning that its share price is 118% less volatile than the S&P 500. Comparatively, CarGurus has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Phoenix New Media and CarGurus, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Phoenix New Media	1	0	0	0	1.00
CarGurus	0	7	7	1	2.60

CarGurus has a consensus price target of $40.45, indicating a potential upside of 44.77%. Given CarGurus’ stronger consensus rating and higher probable upside, analysts clearly believe CarGurus is more favorable than Phoenix New Media.

Institutional and Insider Ownership

6.3% of Phoenix New Media shares are owned by institutional investors. Comparatively, 86.9% of CarGurus shares are owned by institutional investors. 10.9% of Phoenix New Media shares are owned by insiders. Comparatively, 18.2% of CarGurus shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Phoenix New Media and CarGurus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Phoenix New Media	3.62%	2.78%	1.87%
CarGurus	18.06%	62.88%	32.82%

Summary

CarGurus beats Phoenix New Media on 15 of the 15 factors compared between the two stocks.

About Phoenix New Media

Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.

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.