Financial Contrast: PCCW (OTCMKTS:PCCWY) vs. TrueCar (NASDAQ:TRUE)

TrueCar (NASDAQ:TRUE) and PCCW (OTCMKTS:PCCWY) are both computer and technology companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

79.4% of TrueCar shares are held by institutional investors. 3.9% of TrueCar shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk & Volatility

TrueCar has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, PCCW has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for TrueCar and PCCW, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrueCar	2	2	2	0	2.00
PCCW	0	0	0	0	0.00

TrueCar presently has a consensus target price of $3.1875, suggesting a potential upside of 82.14%. Given TrueCar’s stronger consensus rating and higher probable upside, research analysts plainly believe TrueCar is more favorable than PCCW.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TrueCar	-19.70%	-23.39%	-17.89%
PCCW	N/A	N/A	N/A

Valuation and Earnings

This table compares TrueCar and PCCW”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrueCar	$175.60 million	0.87	-$31.05 million	($0.40)	-4.38
PCCW	$4.81 billion	1.10	-$8.46 million	N/A	N/A

PCCW has higher revenue and earnings than TrueCar.

About TrueCar

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 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. The company was incorporated in 2005 and is headquartered in Santa Monica, California.

About PCCW

PCCW Limited provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. The company's services include local telephony, local data and broadband, mobile, enterprise solutions, international telecommunications, and satellite-based and network-based telecommunications services; outsourcing, consulting, and contact center services; and technical consulting and engineering services. It also provides free television, pay television program, and interactive multimedia services; sells advertising in various telephone directories and on the Internet; publishes directories; sells mobile handsets and accessories; distributes media content; and mobile video on demand and advertising services through OTT platform. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, and media content services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products and services; provision of data services; software development, systems integration, consulting, and informatization activities; the provision of computer and IP/IT related value-added services to business customers; operates customer loyalty program and online merchandise sales; and content production, talent management, and entertainment business. Additionally, the company offers e-commerce, travel, insurance, big data analytics, fintech, and health-tech services. PCCW Limited was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.