Vroom (VRM) & The Competition Head-To-Head Comparison

Vroom (NASDAQ:VRM) is one of 120 public companies in the “Consumer Finance” industry, but how does it weigh in compared to its competitors? We will compare Vroom to similar businesses based on the strength of its dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Insider and Institutional Ownership

25.8% of Vroom shares are owned by institutional investors. Comparatively, 46.0% of shares of all “Consumer Finance” companies are owned by institutional investors. 2.9% of Vroom shares are owned by insiders. Comparatively, 22.1% of shares of all “Consumer Finance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for Vroom and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vroom	1	0	0	0	1.00
Vroom Competitors	888	3347	5279	274	2.50

As a group, “Consumer Finance” companies have a potential upside of 20.76%. Given Vroom’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Vroom has less favorable growth aspects than its competitors.

Risk and Volatility

Vroom has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Vroom’s competitors have a beta of 1.26, indicating that their average stock price is 26% more volatile than the S&P 500.

Valuation & Earnings

This table compares Vroom and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vroom	$10.09 million	-$7.96 million	-0.61
Vroom Competitors	$3.64 billion	$385.17 million	5.97

Vroom’s competitors have higher revenue and earnings than Vroom. Vroom is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Vroom and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vroom	-32.38%	-47.65%	-5.59%
Vroom Competitors	9.85%	-15.58%	2.17%

Summary

Vroom competitors beat Vroom on 12 of the 13 factors compared.

Vroom Company Profile

Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.