Telenav (TNAV) versus RumbleON (RMBL) Critical Review

Telenav (NASDAQ: TNAV) and RumbleON (OTCMKTS:RMBL) are both small-cap technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, earnings, risk, dividends and valuation.

Profitability

This table compares Telenav and RumbleON’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Telenav -38.56% -56.00% -22.03%
RumbleON N/A N/A N/A

Volatility and Risk

Telenav has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, RumbleON has a beta of -17.37, suggesting that its share price is 1,837% less volatile than the S&P 500.

Earnings & Valuation

This table compares Telenav and RumbleON’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Telenav $169.58 million 1.42 -$47.26 million ($1.32) -4.09
RumbleON N/A N/A N/A ($0.58) -6.45

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

Institutional and Insider Ownership

53.5% of Telenav shares are held by institutional investors. 24.7% of Telenav shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Telenav and RumbleON, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Telenav 0 0 4 0 3.00
RumbleON 0 0 2 0 3.00

Telenav currently has a consensus target price of $10.88, indicating a potential upside of 101.39%. RumbleON has a consensus target price of $7.38, indicating a potential upside of 97.19%. Given Telenav’s higher probable upside, analysts clearly believe Telenav is more favorable than RumbleON.

Summary

Telenav beats RumbleON on 7 of the 11 factors compared between the two stocks.

About Telenav

TeleNav, Inc. (Telenav) is a provider of location-based platform services. The Company’s services consist of its automotive and mobile navigation platform and its advertising delivery platform. The Company operates through three segments: automotive, advertising and mobile navigation. The automotive segment provides its map and navigation platform to auto manufacturers and original equipment manufacturers (OEMs) for distribution with their vehicles. The advertising segment provides interactive mobile advertisements on behalf of its advertising clients to consumers based on the location of the user and other targeting capabilities. The mobile navigation segment provides its map and navigation platform to end users through mobile devices. The Company’s auto and mobile navigation platform allows it to deliver location-based services to auto manufacturers, developers and end users through various distribution channels, including wireless carriers.

About RumbleON

RumbleON, Inc. (RumbleON), formerly Smart Server Inc., is a development-stage company. The Company focuses on creating an e-commerce platform facilitating the ability of both consumers and dealers to Buy-Sell-Trade-Finance pre-owned recreation vehicles (RV). Serving both consumers and dealers, RumbleON makes such consumers or dealers a cash offer for the purchase of their vehicle. In addition, RumbleON offers an inventory of vehicles for sale on its Website and offers financing and associated products. RumbleON utilizes partner dealers in the acquisition of motorcycles, as well as to provide inspection, reconditioning and distribution services. Its product suite has modules supporting the motorcycle, RV, and marine and auto segments. As of December 31, 2016, the Company had not generated any revenue.

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