Financial Comparison: CarGurus (NASDAQ:CARG) versus Stronghold Digital Mining (NASDAQ:SDIG)

CarGurus (NASDAQ:CARGGet Rating) and Stronghold Digital Mining (NASDAQ:SDIGGet Rating) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

86.2% of CarGurus shares are owned by institutional investors. Comparatively, 12.4% of Stronghold Digital Mining shares are owned by institutional investors. 14.8% of CarGurus shares are owned by company insiders. Comparatively, 56.9% of Stronghold Digital Mining shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares CarGurus and Stronghold Digital Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CarGurus 3.76% 20.56% 10.74%
Stronghold Digital Mining -69.77% -51.87% -2.86%

Valuation and Earnings

This table compares CarGurus and Stronghold Digital Mining’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CarGurus $951.37 million 1.66 -$150,000.00 ($1.16) -11.47
Stronghold Digital Mining $30.92 million 1.16 -$11.21 million ($3.27) -0.23

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CarGurus and Stronghold Digital Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CarGurus 0 3 8 0 2.73
Stronghold Digital Mining 0 2 5 0 2.71

CarGurus currently has a consensus target price of $23.59, indicating a potential upside of 77.24%. Stronghold Digital Mining has a consensus target price of $2.50, indicating a potential upside of 236.93%. Given Stronghold Digital Mining’s higher probable upside, analysts plainly believe Stronghold Digital Mining is more favorable than CarGurus.

Summary

CarGurus beats Stronghold Digital Mining on 10 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 Stronghold Digital Mining

(Get Rating)

Stronghold Digital Mining, Inc., a crypto asset mining company, focuses on mining Bitcoin in the United States. It also operates coal refuse power generation facilities. The company was incorporated in 2021 and is headquartered in New York, New York.

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