MDWerks (OTCMKTS:MDWK – Get Free Report) and Cars.com (NYSE:CARS – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.
Profitability
This table compares MDWerks and Cars.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MDWerks | -179.07% | -308.26% | -88.71% |
| Cars.com | 4.16% | 18.32% | 8.30% |
Risk and Volatility
MDWerks has a beta of 17.15, meaning that its share price is 1,615% more volatile than the S&P 500. Comparatively, Cars.com has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MDWerks | 0 | 0 | 0 | 0 | 0.00 |
| Cars.com | 0 | 3 | 4 | 0 | 2.57 |
Cars.com has a consensus target price of $17.70, suggesting a potential upside of 37.47%. Given Cars.com’s stronger consensus rating and higher possible upside, analysts clearly believe Cars.com is more favorable than MDWerks.
Insider & Institutional Ownership
89.2% of Cars.com shares are owned by institutional investors. 2.4% of Cars.com shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares MDWerks and Cars.com”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MDWerks | $2.36 million | 11.41 | -$1.62 million | ($0.03) | -3.83 |
| Cars.com | $719.15 million | 1.07 | $48.19 million | $0.46 | 27.99 |
Cars.com has higher revenue and earnings than MDWerks. MDWerks is trading at a lower price-to-earnings ratio than Cars.com, indicating that it is currently the more affordable of the two stocks.
Summary
Cars.com beats MDWerks on 12 of the 14 factors compared between the two stocks.
About MDWerks
MDWerks, Inc., together with its subsidiaries, provides energy waving technologies in the United States. The company offers green and radio wave technologies. It also produces and sells alcoholic beverages, including whiskey and vodka. In addition, the company develops radio frequency applications. It serves structural engineering, food and beverage, alcoholic beverages, manufacturing, and adhesives industries. MDWerks, Inc. is based in Green Cove Springs, Florida.
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.
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