DealerTrack Technologies (NASDAQ: TRAK) and HubSpot (NYSE:HUBS) are both technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Profitability

This table compares DealerTrack Technologies and HubSpot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DealerTrack Technologies -3.45% -3.48% -1.59%
HubSpot -13.17% -27.99% -10.98%

Earnings and Valuation

This table compares DealerTrack Technologies and HubSpot’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DealerTrack Technologies N/A N/A N/A N/A N/A
HubSpot $318.38 million 7.83 -$34.68 million ($1.17) -57.56

DealerTrack Technologies has higher revenue, but lower earnings than HubSpot.

Analyst Ratings

This is a summary of recent recommendations for DealerTrack Technologies and HubSpot, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DealerTrack Technologies 0 0 0 0 N/A
HubSpot 0 3 19 0 2.86

HubSpot has a consensus price target of $71.63, indicating a potential upside of 6.36%. Given HubSpot’s higher probable upside, analysts plainly believe HubSpot is more favorable than DealerTrack Technologies.

Insider and Institutional Ownership

92.2% of HubSpot shares are held by institutional investors. 18.5% of HubSpot shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

HubSpot beats DealerTrack Technologies on 5 of the 8 factors compared between the two stocks.

About DealerTrack Technologies

Dealertrack Technologies, Inc. provides Web-based software solutions and services. The Company provides solutions and services for segments of the automotive retail industry, including dealers, lenders, original equipment manufacturers (OEMs), third-party retailers, aftermarket providers and other service providers. Dealertrack operates the online credit application networks in the United States and Canada. The Company’s solutions includes Digital Marketing solutions, Dealer Management solutions, F&I solutions, Inventory solutions, Registration & Titling solutions, and Collateral Management solutions. Digital Marketing solutions include digital marketing tools, such as desktop and mobile Website design, search engine optimization (SEO), search engine marketing (SEM), social media and reputation management tools. Registration & Titling solutions include online and cross-state vehicle registration services.

About HubSpot

HubSpot, Inc. (HubSpot) provides a cloud-based marketing and sales software platform. The Company’s software platform features integrated applications to help businesses attract visitors to their Websites, convert visitors into leads, close leads into customers and delight customers so that they become promoters of those businesses. These integrated applications include social media, search engine optimization, blogging, Website content management, marketing automation, e-mail, sales productivity, customer relationship management (CRM), analytics and reporting. The Company’s products include HubSpot Marketing, HubSpot CRM and HubSpot Sales. The Company offers Professional Services and support. It offers professional services to educate and train customers on how to leverage its software platform and inbound marketing methodology to transform how their business attracts, engages and delights customers.

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