Cars.com (NYSE:CARS) & Grindr (NYSE:GRND) Head to Head Comparison

Grindr (NYSE:GRND) and Cars.com (NYSE:CARS) are both communication services companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

This table compares Grindr and Cars.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grindr	18.75%	357.13%	20.08%
Cars.com	4.73%	18.82%	8.31%

Risk & Volatility

Grindr has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, Cars.com has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.

Institutional & Insider Ownership

7.2% of Grindr shares are owned by institutional investors. Comparatively, 89.2% of Cars.com shares are owned by institutional investors. 60.9% of Grindr shares are owned by company insiders. Comparatively, 3.4% of Cars.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Grindr and Cars.com”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grindr	$439.90 million	6.24	$94.75 million	$0.50	31.60
Cars.com	$723.24 million	0.80	$20.05 million	$0.57	18.96

Grindr has higher earnings, but lower revenue than Cars.com. Cars.com is trading at a lower price-to-earnings ratio than Grindr, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Grindr and Cars.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grindr	0	1	5	0	2.83
Cars.com	0	5	3	0	2.38

Grindr presently has a consensus price target of $20.00, suggesting a potential upside of 26.57%. Cars.com has a consensus price target of $14.83, suggesting a potential upside of 37.28%. Given Cars.com’s higher probable upside, analysts clearly believe Cars.com is more favorable than Grindr.

Summary

Grindr beats Cars.com on 9 of the 14 factors compared between the two stocks.

About Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.

About Cars.com

Cars.com Inc., through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers. It also sells online subscription advertising products to car dealerships by its direct sales force, as well as through its affiliate sales channel. In addition, the company sells display advertising to national advertisers. Further, it offers online automotive marketplace service that connects buyers and sellers through Cars.com, Auto.com, DealerRater.com, NewCars.com, PickupTrucks.com, DealerInspire.com, and LaunchDigitalMarketing.com Websites. Its platform hosts approximately 4.9 million new and used vehicle listings and serves approximately 20,000 franchise and independent car dealers. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.