Critical Survey: Autoweb (AUTO) & Cardlytics (CDLX)

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Autoweb (NASDAQ: AUTO) and Cardlytics (NASDAQ:CDLX) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.

Valuation & Earnings

This table compares Autoweb and Cardlytics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Autoweb $142.13 million 0.34 -$64.96 million $0.29 12.93
Cardlytics $130.37 million 3.08 -$19.64 million ($8.02) -2.47

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

Profitability

This table compares Autoweb and Cardlytics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autoweb -61.64% -7.50% -5.65%
Cardlytics N/A N/A N/A

Institutional & Insider Ownership

44.3% of Autoweb shares are owned by institutional investors. Comparatively, 48.0% of Cardlytics shares are owned by institutional investors. 30.6% of Autoweb shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Autoweb and Cardlytics, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autoweb 0 3 0 0 2.00
Cardlytics 0 1 5 0 2.83

Autoweb presently has a consensus price target of $5.00, indicating a potential upside of 33.33%. Cardlytics has a consensus price target of $22.40, indicating a potential upside of 13.02%. Given Autoweb’s higher probable upside, equities analysts clearly believe Autoweb is more favorable than Cardlytics.

Summary

Cardlytics beats Autoweb on 8 of the 12 factors compared between the two stocks.

Autoweb Company Profile

AutoWeb, Inc. operates as a digital marketing company for the automotive industry in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its programs. The company's products include new vehicle lead program, which allows consumers to submit requests for pricing and availability of specific makes and models; and used vehicle lead program, which allows consumers to search for used vehicles according to search parameters, such as price, make, model, mileage, year, and location of the vehicle. The company's products and services also comprise WebLeads+ that offers various coupon options, which display marketing messages to consumers visiting the dealer's Website; and Payment Pro, a dealer Website conversion tool that offers consumers real-time online monthly payment information, as well as sells fixed placement advertising across its Website to automotive advertisers. It owns and operates automotive Websites that offers consumers with the information and tools to aid them with their automotive purchase decisions; an automotive search engine that enables manufactures and dealers to optimize advertising campaigns; AutoWeb Traffic Product, a pay-per-click advertising program that offer targeted offers to consumers based on make, model, and geographic location; and AutoWeb consumer traffic referral product that engages car buyers from the AutoWeb's network of automotive Websites to present them with offers based on their make and model of interest, as well as geographic location. The company was formerly known as Autobytel Inc. and changed its name to AutoWeb, Inc. in October 2017. AutoWeb, Inc. was founded in 1995 and is headquartered in Irvine, California.

Cardlytics Company Profile

Cardlytics, Inc. operates a purchase intelligence platform in the United States and the United Kingdom. It operates in two segments, Cardlytics Direct and Other Platform Solutions. The company's platform is the Cardlytics Direct solution, a proprietary native bank advertising channel that enables marketers to reach consumers through their trusted and frequently visited online and mobile banking channels. It also provides solutions that enable marketers and marketing service providers to leverage the power of purchase intelligence outside the banking channel. The company was founded in 2008 and is headquartered in Atlanta, Georgia.

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