Head to Head Review: Cars.com (NYSE:CARS) and Boohoo Group (OTCMKTS:BHOOY)

Cars.com (NYSE:CARS) and Boohoo Group (OTCMKTS:BHOOY) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cars.com	2.77%	17.31%	7.77%
Boohoo Group	N/A	N/A	N/A

Volatility & Risk

Cars.com has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Boohoo Group has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Institutional and Insider Ownership

89.2% of Cars.com shares are held by institutional investors. 2.4% of Cars.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Cars.com and Boohoo Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cars.com	$723.24 million	0.88	$20.05 million	$0.32	34.36
Boohoo Group	$1.01 billion	0.37	-$415.90 million	N/A	N/A

Cars.com has higher earnings, but lower revenue than Boohoo Group.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cars.com and Boohoo Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cars.com	1	3	4	0	2.38
Boohoo Group	0	0	0	0	0.00

Cars.com presently has a consensus target price of $16.00, indicating a potential upside of 45.52%. Given Cars.com’s stronger consensus rating and higher possible upside, research analysts clearly believe Cars.com is more favorable than Boohoo Group.

Summary

Cars.com beats Boohoo Group on 11 of the 12 factors compared between the two stocks.

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.

About Boohoo Group

boohoo group plc, through its subsidiaries, operates as an online clothing retailer in the United Kingdom, rest of Europe, the United States, and internationally. The company designs, sources, markets, and sells clothing, shoes, accessories, and beauty products for 16-to-45-year age customers. It provides its products under the boohoo, boohooMAN, PrettyLittleThing, Nasty Gal, MissPap, Karen Millen, Coast, Oasis, Warehouse, Dorothy Perkins, Wallis, Burton, and Debenhams brands. The company was founded in 2006 and is headquartered in Manchester, the United Kingdom.