CarGurus (NASDAQ:CARG) and MINDBODY (NASDAQ:MB) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
63.4% of CarGurus shares are held by institutional investors. Comparatively, 98.9% of MINDBODY shares are held by institutional investors. 51.0% of CarGurus shares are held by company insiders. Comparatively, 6.0% of MINDBODY shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares CarGurus and MINDBODY’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares CarGurus and MINDBODY’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CarGurus||$316.86 million||14.52||$13.19 million||$0.12||350.25|
|MINDBODY||$182.63 million||7.01||-$14.79 million||($0.30)||-89.40|
CarGurus has higher revenue and earnings than MINDBODY. MINDBODY is trading at a lower price-to-earnings ratio than CarGurus, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for CarGurus and MINDBODY, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CarGurus presently has a consensus target price of $54.25, indicating a potential upside of 29.07%. MINDBODY has a consensus target price of $33.70, indicating a potential upside of 25.65%. Given CarGurus’ stronger consensus rating and higher possible upside, research analysts clearly believe CarGurus is more favorable than MINDBODY.
CarGurus beats MINDBODY on 10 of the 12 factors compared between the two stocks.
CarGurus Company Profile
CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars worldwide. The company's marketplace enables users with third-party validation on pricing, dealer reputation, and other information. As of June 30, 2017, it had an active dealer network of approximately 40,000 dealers; and approximately 5.4 million car listings. The company was founded in 2005 and is headquartered in Cambridge, Massachusetts..
MINDBODY Company Profile
MINDBODY, Inc. operates a cloud-based business management software and payments platform for the small and medium-sized businesses in the wellness services industry. Its platform enables businesses to run, market, and build scheduling and online booking, performance tracking, staff management, client relationship management, integrated payment processing, retail point-of-sale, purchase tracking, inventory, hardware integration, analytics and reporting, branded Web, mobility, social integration, client acquisition dashboard, security and compliance, and integration with other cloud-based partners for yoga, Pilates, indoor cycling, group and personal training, boutique fitness, salons, spas, and integrative health businesses. The company offers its software platform to its subscribers as a subscription-based service. It also connects consumers with businesses through its MINDBODY app, a consumer-facing mobile application that allows consumers to discover, evaluate, book, and pay for wellness services; MINDBODY Network, a fee-based platform that connects its customers with local consumers through the MINDBODY app and third-party partner applications, or Websites; and MINDBODY API Platform and Partner Ecosystem, a platform focuses in areas, such as marketing automation, accounting, loyalty, mobile, and social interactions. The company sells its subscriptions through a direct sales team primarily in San Luis Obispo, California; the United Kingdom; and Australia. MINDBODY, Inc. was founded in 2001 and is headquartered in San Luis Obispo, California.
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