Financial Contrast: D-MARKET Electronic Services & Trading (NASDAQ:HEPS) and Cars.com (NYSE:CARS)

D-MARKET Electronic Services & Trading (NASDAQ:HEPS) and Cars.com (NYSE:CARS) are both small-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

40.5% of D-MARKET Electronic Services & Trading shares are held by institutional investors. Comparatively, 89.2% of Cars.com shares are held by institutional investors. 36.3% of D-MARKET Electronic Services & Trading shares are held by company insiders. Comparatively, 2.1% of Cars.com 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.

Risk and Volatility

D-MARKET Electronic Services & Trading has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500. Comparatively, Cars.com has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500.

Valuation & Earnings

This table compares D-MARKET Electronic Services & Trading and Cars.com”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
D-MARKET Electronic Services & Trading	$1.74 billion	0.50	-$48.95 million	($0.18)	-14.94
Cars.com	$719.15 million	0.94	$48.19 million	$0.62	17.73

Cars.com has lower revenue, but higher earnings than D-MARKET Electronic Services & Trading. D-MARKET Electronic Services & Trading is trading at a lower price-to-earnings ratio than Cars.com, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares D-MARKET Electronic Services & Trading and Cars.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
D-MARKET Electronic Services & Trading	-4.22%	-62.27%	-7.79%
Cars.com	5.71%	17.43%	7.91%

Analyst Recommendations

This is a summary of current recommendations and price targets for D-MARKET Electronic Services & Trading and Cars.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
D-MARKET Electronic Services & Trading	1	2	0	0	1.67
Cars.com	0	3	4	0	2.57

D-MARKET Electronic Services & Trading currently has a consensus price target of $3.50, indicating a potential upside of 30.11%. Cars.com has a consensus price target of $17.90, indicating a potential upside of 62.80%. Given Cars.com’s stronger consensus rating and higher probable upside, analysts clearly believe Cars.com is more favorable than D-MARKET Electronic Services & Trading.

Summary

Cars.com beats D-MARKET Electronic Services & Trading on 11 of the 14 factors compared between the two stocks.

About D-MARKET Electronic Services & Trading

D-Market Elektronik Hizmetler ve Ticaret A.S. operates e-commerce platforms in Turkey. The company operates www.hepsiburada.com, a retail website that provides its retail customers a range of merchandise, including electronics and non-electronics products, such as books, sports, toys, kids and baby products, cosmetics, furniture, etc. It also offers Hepsiburada Market, an app-in-app initiative and on-demand delivery service that delivers groceries and water; HepsiJet that provides last-mile delivery services; HepsiLojistik, which offers storage and fulfillment services; HepsiMat, an offline network of pick-up and drop-off point; HepsiAd that provides advertising service; HepsiGlobal for discovering and purchasing products from international merchants online; Hepsipay, which offers an e-money and payment services; and Hepsiburada Seyahat for buying airline tickets online. The company was incorporated in 2000 and is headquartered in Istanbul, Turkey.

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.