Critical Contrast: Weibo (WB) versus CarGurus (CARG)

Weibo (NASDAQ: WB) and CarGurus (NASDAQ:CARG) are both mid-cap computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Earnings and Valuation

This table compares Weibo and CarGurus’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Weibo $655.80 million 33.81 $108.02 million $1.18 84.95
CarGurus N/A N/A N/A N/A N/A

Weibo has higher revenue and earnings than CarGurus.

Institutional & Insider Ownership

22.0% of Weibo shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Weibo and CarGurus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Weibo 26.85% 30.00% 20.97%
CarGurus N/A N/A N/A

Analyst Recommendations

This is a summary of recent recommendations for Weibo and CarGurus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Weibo 0 0 7 0 3.00
CarGurus 0 4 1 0 2.20

Weibo presently has a consensus price target of $93.86, suggesting a potential downside of 6.37%. CarGurus has a consensus price target of $29.50, suggesting a potential downside of 2.74%. Given CarGurus’ higher probable upside, analysts plainly believe CarGurus is more favorable than Weibo.

Summary

Weibo beats CarGurus on 7 of the 8 factors compared between the two stocks.

About Weibo

Weibo Corporation is a social media platform for people to create, distribute and discover Chinese-language content. The Company provides ways for people and organizations to publicly express themselves in real time, interact with others on a global platform and stay connected with the world. It operates in two segments: advertising and marketing services and other services. It offers self-expression products that enable its users to express themselves on its platform; social products to promote social interaction between users on its platform; discovery products to help users discover content on its platform, and notifications to notify users on Weibo account activities through short message service (SMS) or push notification on their device. It offers advertising and marketing solutions to enable its customers to promote their brands and conduct marketing activities. It offers its platform partners with tools and application programming interfaces (APIs).

About CarGurus

CarGurus, Inc. is an online automotive marketplace connecting buyers and sellers of new and used cars. Using proprietary technology, search algorithms, and data analytics. The Company’s marketplace empowers users with unbiased third-party validation on pricing and dealer reputation as well as other information that aids them in finding Great Deals from Great Dealers. In addition to the United States, the Company operates online marketplaces in Canada, the United Kingdom, and Germany. The Company’s products include Consumer Marketplace, Dealer Marketplace, Dealer Dashboard, Dealer Advertising and Customer Acquisition Products, Auto Manufacturer and Other Advertiser Products.

Receive News & Ratings for Weibo Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Weibo Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply