Cars.com (NYSE:CARS – Get Free Report) and Hour Loop (NASDAQ:HOUR – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, profitability, risk, institutional ownership, analyst recommendations and dividends.
Institutional & Insider Ownership
89.2% of Cars.com shares are owned by institutional investors. Comparatively, 0.3% of Hour Loop shares are owned by institutional investors. 2.4% of Cars.com shares are owned by insiders. Comparatively, 95.0% of Hour Loop shares are owned by 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.
Analyst Ratings
This is a summary of current ratings for Cars.com and Hour Loop, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cars.com | 0 | 3 | 4 | 0 | 2.57 |
| Hour Loop | 1 | 0 | 0 | 0 | 1.00 |
Risk & Volatility
Cars.com has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Hour Loop has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.
Profitability
This table compares Cars.com and Hour Loop’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cars.com | 4.16% | 18.32% | 8.30% |
| Hour Loop | 0.59% | 12.96% | 3.57% |
Earnings & Valuation
This table compares Cars.com and Hour Loop”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cars.com | $719.15 million | 1.00 | $48.19 million | $0.46 | 26.18 |
| Hour Loop | $138.25 million | 0.47 | $660,000.00 | $0.03 | 61.67 |
Cars.com has higher revenue and earnings than Hour Loop. Cars.com is trading at a lower price-to-earnings ratio than Hour Loop, indicating that it is currently the more affordable of the two stocks.
Summary
Cars.com beats Hour Loop on 11 of the 14 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 Hour Loop
Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells products in various categories, including home/garden décor, toys, kitchenware, apparels, and electronics products. It sells its products through hourloop.com, as well as third-party marketplaces. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.
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