Critical Review: Metalpha Technology (NASDAQ:MATH) vs. TrueCar (NASDAQ:TRUE)

Metalpha Technology (NASDAQ:MATH) and TrueCar (NASDAQ:TRUE) are both small-cap computer and technology 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.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Metalpha Technology and TrueCar, as provided by MarketBeat.com.

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

TrueCar has a consensus price target of $3.1875, indicating a potential upside of 70.45%. Given TrueCar’s stronger consensus rating and higher probable upside, analysts plainly believe TrueCar is more favorable than Metalpha Technology.

Earnings and Valuation

This table compares Metalpha Technology and TrueCar”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metalpha Technology	$44.57 million	2.53	$15.90 million	N/A	N/A
TrueCar	$175.60 million	0.94	-$31.05 million	($0.34)	-5.50

Metalpha Technology has higher earnings, but lower revenue than TrueCar.

Institutional & Insider Ownership

30.5% of Metalpha Technology shares are owned by institutional investors. Comparatively, 79.4% of TrueCar shares are owned by institutional investors. 5.9% of Metalpha Technology shares are owned by insiders. Comparatively, 3.9% of TrueCar 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.

Volatility & Risk

Metalpha Technology has a beta of -1.03, meaning that its stock price is 203% less volatile than the S&P 500. Comparatively, TrueCar has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Metalpha Technology	N/A	N/A	N/A
TrueCar	-15.95%	-24.73%	-18.73%

About Metalpha Technology

Metalpha Technology Holding Limited, together with its subsidiaries, provides wealth management services in Hong Kong. The company offers digital asset-based wealth management services, which include issuing traditional financial and cryptocurrency derivative products to over-the-counter clients, providing crypto derivative market making services, and proprietary trading of digital assets and crypto derivative products; and securities advising and asset management services. It serves institutional investors and high-net-worth individuals. The company was formerly known as Dragon Victory International Limited and changed its name to Metalpha Technology Holding Limited in November 2022. The company was incorporated in 2015 and is headquartered in Wan Chai, Hong Kong.

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.