TrueCar (TRUE) versus The Competition Financial Review
TrueCar (NASDAQ: TRUE) is one of 50 publicly-traded companies in the “Internet Services” industry, but how does it compare to its competitors? We will compare TrueCar to similar businesses based on the strength of its earnings, analyst recommendations, institutional ownership, valuation, risk, dividends and 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|
Valuation and Earnings
This table compares TrueCar and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|TrueCar||$306.80 million||-$16.51 million||-44.03|
|TrueCar Competitors||$940.86 million||$116.44 million||54.26|
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.
This is a summary of current ratings for TrueCar and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TrueCar presently has a consensus price target of $18.50, suggesting a potential upside of 20.05%. As a group, “Internet Services” companies have a potential upside of 5.75%. Given TrueCar’s stronger consensus rating and higher possible upside, equities analysts plainly believe TrueCar is more favorable than its competitors.
Risk and Volatility
TrueCar has a beta of 3, indicating that its stock price is 200% more volatile than the S&P 500. Comparatively, TrueCar’s competitors have a beta of 1.36, indicating that their average stock price is 36% more volatile than the S&P 500.
Institutional and Insider Ownership
91.7% of TrueCar shares are owned by institutional investors. Comparatively, 62.2% of shares of all “Internet Services” companies are owned by institutional investors. 15.5% of TrueCar shares are owned by company insiders. Comparatively, 22.9% of shares of all “Internet Services” companies are owned by company 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.
TrueCar competitors beat TrueCar on 7 of the 12 factors compared.
TrueCar Company Profile
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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