TrueCar (NASDAQ: TRUE) is one of 50 publicly-traded companies in the “Internet Services” industry, but how does it contrast to its competitors? We will compare TrueCar to related businesses based on the strength of its dividends, profitability, valuation, earnings, analyst recommendations, institutional ownership and risk.

Insider & Institutional Ownership

91.7% of TrueCar shares are owned by institutional investors. Comparatively, 62.3% of shares of all “Internet Services” companies are owned by institutional investors. 15.5% of TrueCar shares are owned by insiders. Comparatively, 22.9% of shares of all “Internet Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
TrueCar -9.86% -11.00% -8.49%
TrueCar Competitors 0.37% 27.20% 6.30%

Valuation and Earnings

This table compares TrueCar and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
TrueCar $306.80 million -$16.51 million -47.77
TrueCar Competitors $950.86 million $126.85 million 54.27

TrueCar’s competitors have higher revenue and earnings than TrueCar. TrueCar 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.

Volatility & Risk

TrueCar has a beta of 3, indicating that its share price is 200% more volatile than the S&P 500. Comparatively, TrueCar’s competitors have a beta of 1.36, indicating that their average share price is 36% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for TrueCar and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TrueCar 1 2 7 0 2.60
TrueCar Competitors 440 1689 2625 104 2.49

TrueCar currently has a consensus price target of $18.50, suggesting a potential upside of 10.65%. As a group, “Internet Services” companies have a potential upside of 6.54%. Given TrueCar’s stronger consensus rating and higher probable upside, analysts plainly believe TrueCar is more favorable than its competitors.

Summary

TrueCar competitors beat TrueCar on 7 of the 12 factors compared.

About TrueCar

TrueCar, Inc. is an Internet-based information, technology, and communication services company. The Company has a data-driven online platform, which features market data and analytics. The Company-branded platform is available on its TrueCar Website and mobile applications. It customizes and operates its platform on a co-branded basis for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for a range of enterprises. The Company enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar Certified Dealers. Its network of over 13,000 TrueCar Certified Dealers consists primarily of new car franchises, as well as independent dealers selling used vehicles. Its subsidiary, ALG, Inc., provides forecasts and consulting services regarding determination of the residual value of an automobile at given future points in time.

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