Head to Head Review: TrueCar (NASDAQ:TRUE) and Momentive Global (NASDAQ:MNTV)

TrueCar (NASDAQ:TRUEGet Rating) and Momentive Global (NASDAQ:MNTVGet Rating) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for TrueCar and Momentive Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TrueCar 0 5 1 0 2.17
Momentive Global 0 4 1 0 2.20

TrueCar presently has a consensus price target of $4.31, indicating a potential upside of 11.72%. Momentive Global has a consensus price target of $33.92, indicating a potential upside of 88.43%. Given Momentive Global’s stronger consensus rating and higher possible upside, analysts clearly believe Momentive Global is more favorable than TrueCar.

Institutional & Insider Ownership

94.4% of TrueCar shares are owned by institutional investors. Comparatively, 77.1% of Momentive Global shares are owned by institutional investors. 3.4% of TrueCar shares are owned by insiders. Comparatively, 17.1% of Momentive Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

TrueCar has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Momentive Global has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.

Profitability

This table compares TrueCar and Momentive Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TrueCar -16.54% -10.95% -9.23%
Momentive Global -27.77% -34.69% -13.34%

Valuation and Earnings

This table compares TrueCar and Momentive Global’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TrueCar $231.70 million 1.61 -$38.33 million ($0.39) -9.90
Momentive Global $443.79 million 6.10 -$123.25 million ($0.83) -21.69

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

TrueCar Company Profile (Get Rating)

TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. In addition, it provides accurate, geographically specific, and real-time pricing information for consumers and dealers; TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. TrueCar, Inc. was incorporated in 2005 and is headquartered in Santa Monica, California.

Momentive Global Company Profile (Get Rating)

Momentive Global Inc. provides Software-as-a-Service solutions that help businesses turn stakeholder feedback into action in the United States and internationally. It offers survey software products under the SurveyMonkey brand, that enable customers to listen and take action on stakeholder feedback; GetFeedback CX platform, which enables companies to leverage in-the-moment customer feedback to engage and retain their customers; GetFeedback Essentials provides companies the tools to launch customer experience programs quickly by gathering feedback via email and across their websites, analyzing it in one place, and integrating with their Salesforce CRM platform; GetFeedback Pro, includes the Essentials features and adds feedback collection channels, advanced analytics, automation, and additional pre-built integrations; and GetFeedback Ultimate, comprises the GetFeedback Pro features and adds mobile apps as a feedback collection channel and enables single sign-on. The company also provides Audience panel, which enables organizations to collect and analyze real-time actionable data from targeted panelists; Purpose-built insights solutions offers a suite of solutions, such as brand and industry tracking, usage & attitudes, and concept, packaging, Ad, name, message, and logo design testing; TechValidate, a marketing content automation solution; SurveyMonkey Apply, an application management solution; and Wufoo that helps users create web and mobile forms, collect file uploads, and receive online payments. It serves financial services, internet, technology, healthcare, media and entertainment, consumer goods and retail, transportation and logistics, government agencies, manufacturing, energy, education, professional services, and non-profit organizations. The company was formerly known as SVMK Inc. and changed its name to Momentive Global Inc. in June 2021. Momentive Global Inc. was founded in 1999 and is headquartered in San Mateo, California.

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