Cars.com (NYSE:CARS – Get Free Report) and Yunji (NASDAQ:YJ – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.
Valuation and Earnings
This table compares Cars.com and Yunji”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cars.com | $719.15 million | 1.17 | $48.19 million | $0.62 | 22.01 |
| Yunji | $57.22 million | 0.15 | -$16.86 million | ($3.44) | -0.49 |
Risk & Volatility
Cars.com has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Yunji has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Cars.com and Yunji, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cars.com | 0 | 1 | 4 | 1 | 3.00 |
| Yunji | 0 | 0 | 0 | 0 | 0.00 |
Cars.com currently has a consensus target price of $17.30, suggesting a potential upside of 26.80%. Given Cars.com’s stronger consensus rating and higher possible upside, analysts plainly believe Cars.com is more favorable than Yunji.
Institutional & Insider Ownership
89.2% of Cars.com shares are held by institutional investors. 2.4% of Cars.com shares are held by company insiders. Comparatively, 45.3% of Yunji shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Cars.com and Yunji’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cars.com | 5.71% | 17.43% | 7.91% |
| Yunji | -29.39% | -10.42% | -8.33% |
Summary
Cars.com beats Yunji on 14 of the 15 factors compared between the two stocks.
About Cars.com
Cars.com Inc., through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers. It also sells online subscription advertising products to car dealerships by its direct sales force, as well as through its affiliate sales channel. In addition, the company sells display advertising to national advertisers. Further, it offers online automotive marketplace service that connects buyers and sellers through Cars.com, Auto.com, DealerRater.com, NewCars.com, PickupTrucks.com, DealerInspire.com, and LaunchDigitalMarketing.com Websites. Its platform hosts approximately 4.9 million new and used vehicle listings and serves approximately 20,000 franchise and independent car dealers. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.
About Yunji
Yunji Inc., together with its subsidiaries, operates a social e-commerce platform in the People's Republic of China. It offers a range of product categories that cater various daily needs of users and their households, including beauty and personal care, household goods, cloths, food and fresh produce, computer and electronics, apparel, bags and cases, baby and maternity products, and home appliances. The company was founded in 2015 and is headquartered in Hangzhou, the People's Republic of China.
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