CarGurus (NASDAQ:CARG) vs. Marin Software (NASDAQ:MRIN) Critical Review

CarGurus (NASDAQ:CARGGet Rating) and Marin Software (NASDAQ:MRINGet Rating) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Profitability

This table compares CarGurus and Marin Software’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CarGurus 2.05% 22.94% 13.97%
Marin Software -54.70% -39.79% -30.03%

Analyst Recommendations

This is a breakdown of current ratings and target prices for CarGurus and Marin Software, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CarGurus 0 3 8 0 2.73
Marin Software 0 0 0 0 N/A

CarGurus currently has a consensus price target of $41.45, indicating a potential upside of 68.24%. Given CarGurus’ higher probable upside, equities research analysts plainly believe CarGurus is more favorable than Marin Software.

Institutional & Insider Ownership

16.4% of Marin Software shares are owned by institutional investors. 14.8% of CarGurus shares are owned by insiders. Comparatively, 4.7% of Marin Software shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares CarGurus and Marin Software’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CarGurus $951.37 million 3.07 -$150,000.00 ($0.74) -33.30
Marin Software $24.42 million 1.17 -$12.94 million ($0.91) -2.01

CarGurus has higher revenue and earnings than Marin Software. CarGurus is trading at a lower price-to-earnings ratio than Marin Software, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

CarGurus has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, Marin Software has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.

Summary

CarGurus beats Marin Software on 11 of the 13 factors compared between the two stocks.

About CarGurus

(Get Rating)

CarGurus, Inc. operates an online automotive marketplace connecting buyers and sellers of new and used cars in the United States and internationally. The company provides consumers an online automotive marketplace where they can search for new and used car listings from its dealers, as well as sell their car in the United States marketplace. Its marketplace connects dealers to a large audience of informed and engaged consumers. The company operates online marketplaces under the CarGurus brand in Canada and the United Kingdom; and the Autolist and PistonHeads online marketplaces as independent brands in the United States and the United Kingdom. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

About Marin Software

(Get Rating)

Marin Software Incorporated, together with its subsidiaries, provides enterprise marketing software for advertisers and agencies in the United States, the United Kingdom, and internationally. It offers MarinOne, a search, social, and eCommerce advertising platform; Marin Search to manage advertising campaigns for advertisers and agencies; and Marin Social that enables advertisers to manage their Facebook, Instagram, and Twitter advertising, as well as managed services. The company markets and sells its solutions to advertisers directly, and through advertising agencies that use its platform on behalf of their customers. Marin Software Incorporated was incorporated in 2006 and is headquartered in San Francisco, California.

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