Vroom (NASDAQ:VRM) and Kaixin Auto (NASDAQ:KXIN) Financial Comparison

Kaixin Auto (NASDAQ:KXINGet Rating) and Vroom (NASDAQ:VRMGet Rating) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Insider & Institutional Ownership

0.4% of Kaixin Auto shares are owned by institutional investors. Comparatively, 83.9% of Vroom shares are owned by institutional investors. 20.8% of Kaixin Auto shares are owned by insiders. Comparatively, 17.4% of Vroom shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Kaixin Auto has a beta of -0.36, suggesting that its stock price is 136% less volatile than the S&P 500. Comparatively, Vroom has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Kaixin Auto and Vroom, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kaixin Auto 0 0 0 0 N/A
Vroom 0 7 2 0 2.22

Vroom has a consensus target price of $23.36, suggesting a potential upside of 1,378.71%. Given Vroom’s higher possible upside, analysts plainly believe Vroom is more favorable than Kaixin Auto.

Earnings and Valuation

This table compares Kaixin Auto and Vroom’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kaixin Auto $33.16 million 4.33 -$5.30 million N/A N/A
Vroom $3.18 billion 0.07 -$370.91 million ($2.72) -0.58

Kaixin Auto has higher earnings, but lower revenue than Vroom.

Profitability

This table compares Kaixin Auto and Vroom’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kaixin Auto N/A N/A N/A
Vroom -11.65% -34.12% -16.51%

Summary

Kaixin Auto beats Vroom on 6 of the 11 factors compared between the two stocks.

Kaixin Auto Company Profile (Get Rating)

Haitaoche Limited (Cayman) operates a China-based electronic commerce platform for imported automobiles. The company was founded in 2015 and is based in China.

Vroom Company Profile (Get Rating)

Vroom, Inc. operates as an e-commerce used automotive retailer in the United States. It operates end-to-end ecommerce platform for buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. The company was incorporated in 2012 and is headquartered in New York, New York.

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