Head to Head Survey: ACV Auctions (NASDAQ:ACVA) and NextPlay Technologies (NASDAQ:NXTP)

ACV Auctions (NASDAQ:ACVA) and NextPlay Technologies (NASDAQ:NXTP) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, analyst recommendations, risk, institutional ownership, profitability and earnings.

Analyst Recommendations

This is a breakdown of recent ratings for ACV Auctions and NextPlay Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACV Auctions	0	2	9	0	2.82
NextPlay Technologies	0	0	0	0	0.00

ACV Auctions currently has a consensus target price of $22.50, indicating a potential upside of 42.86%. Given ACV Auctions’ stronger consensus rating and higher possible upside, equities research analysts clearly believe ACV Auctions is more favorable than NextPlay Technologies.

Profitability

This table compares ACV Auctions and NextPlay Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ACV Auctions	-12.51%	-12.94%	-5.75%
NextPlay Technologies	N/A	N/A	N/A

Volatility and Risk

ACV Auctions has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, NextPlay Technologies has a beta of 2.45, meaning that its stock price is 145% more volatile than the S&P 500.

Earnings & Valuation

This table compares ACV Auctions and NextPlay Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACV Auctions	$637.16 million	4.17	-$79.70 million	($0.49)	-32.14
NextPlay Technologies	$8.20 million	0.00	-$37.97 million	N/A	N/A

NextPlay Technologies has lower revenue, but higher earnings than ACV Auctions.

Institutional and Insider Ownership

88.6% of ACV Auctions shares are held by institutional investors. Comparatively, 3.0% of NextPlay Technologies shares are held by institutional investors. 8.5% of ACV Auctions shares are held by insiders. Comparatively, 24.5% of NextPlay Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company’s marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green’s seller assurance service for against claims related to defects in the vehicle. It also provides remarketing centers, which offers value-added services, such as vehicle reconditioning and storage for dealers and commercial partners. In addition, the company offers data services, including True360 report, which provides cosmetic and structural vehicle assessments integrated into vehicle history reports for dealer to make wholesale and retail transaction decisions on and off the marketplace; ACV market report provides transaction data and condition reports for comparable used vehicles, including pricing data from third-party sources and allows dealers to determine pricing and valuation strategies for used vehicles; and ACV MAX inventory management software enables dealers to manage their inventory and set pricing while turning vehicles. Further, it provides data and technology through inspection, such as condition reports, virtual lift solutions, apex device, and vehicle intelligence platform; and marketplace enablement, comprising MyACV application, private marketplaces, operations automation, live appraisals, and programmatic buying service. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.

About NextPlay Technologies

NextPlay Technologies, Inc., a technology solutions company, provides games, in-game advertising, digital asset products and services, connected TV, and travel booking services to consumers and corporations in the United States, Puerto Rico, Europe, and Thailand. The company operates through three segments: Media, FinTech, and Travel. The Media segment provides HotPlay games studio, a game development studio that develops a range of casual games; HotPlay redemption mobile application, a digital wallet that is used to collect the HotPlay IGA rewards; HotPlay In game advertising and rewards platform, that enable advertisements and rewards to be inserted in game; goPlay platform, a gamification platform for users to compete against each other through tournaments and challenges, as well as a reward platform that rewards users for their continued loyalty and continuous game; and Zappware, a TV as a Service platform, which includes media source ingest, encoding and transcoding, packaging, protection, delivery, playback, and analytics that provide telco operators for their digital media processing, as well as a client side set top box and smart TV middleware platform, associated application framework and corresponding, and supporting content management system. The FinTech segment engages in the development of NextFinTech Platform, an integrated digital financial platform, which offers mobile banking, investments into alternative assets, and insurance to businesses and individuals. The Travel segment offers booking solutions for business and leisure; and travel technology solutions comprising alternative lodging rental properties under NextTrip ConNextions brand. The company was incorporated in 2005 and is based in Sunrise, Florida.