Critical Review: ACV Auctions (NASDAQ:ACVA) versus Spree Acquisition Corp. 1 (NYSE:SHAP)

Spree Acquisition Corp. 1 (NYSE:SHAP) and ACV Auctions (NASDAQ:ACVA) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Institutional and Insider Ownership

9.9% of Spree Acquisition Corp. 1 shares are held by institutional investors. Comparatively, 88.6% of ACV Auctions shares are held by institutional investors. 58.4% of Spree Acquisition Corp. 1 shares are held by company insiders. Comparatively, 2.9% of ACV Auctions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Spree Acquisition Corp. 1 and ACV Auctions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spree Acquisition Corp. 1	0	0	0	0	0.00
ACV Auctions	0	1	10	0	2.91

ACV Auctions has a consensus target price of $19.45, suggesting a potential upside of 98.62%. Given ACV Auctions’ stronger consensus rating and higher probable upside, analysts clearly believe ACV Auctions is more favorable than Spree Acquisition Corp. 1.

Risk & Volatility

Spree Acquisition Corp. 1 has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500. Comparatively, ACV Auctions has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500.

Profitability

This table compares Spree Acquisition Corp. 1 and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Spree Acquisition Corp. 1	N/A	-22.17%	6.72%
ACV Auctions	-12.51%	-12.94%	-5.75%

Earnings & Valuation

This table compares Spree Acquisition Corp. 1 and ACV Auctions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spree Acquisition Corp. 1	N/A	N/A	$4.35 million	N/A	N/A
ACV Auctions	$707.24 million	2.38	-$79.70 million	($0.39)	-25.12

Spree Acquisition Corp. 1 has higher earnings, but lower revenue than ACV Auctions.

Summary

ACV Auctions beats Spree Acquisition Corp. 1 on 7 of the 11 factors compared between the two stocks.

About Spree Acquisition Corp. 1

Spree Acquisition Corp. 1 Limited does not have significant operations. It focuses on effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses in the mobility-related technology businesses. The company was incorporated in 2021 and is based in Atlanta, Georgia.

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.