Critical Analysis: Curtiss Motorcycles (OTCMKTS:CMOT) vs. Vroom (NASDAQ:VRM)

Curtiss Motorcycles (OTCMKTS:CMOT) and Vroom (NASDAQ:VRM) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares Curtiss Motorcycles and Vroom”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Curtiss Motorcycles	N/A	N/A	N/A	N/A	N/A
Vroom	$11.61 million	5.53	-$165.12 million	($26.84)	-0.46

Curtiss Motorcycles has higher earnings, but lower revenue than Vroom.

Analyst Recommendations

This is a summary of recent ratings and price targets for Curtiss Motorcycles and Vroom, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Curtiss Motorcycles	0	0	0	0	0.00
Vroom	1	0	0	0	1.00

Profitability

This table compares Curtiss Motorcycles and Vroom’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Curtiss Motorcycles	N/A	N/A	N/A
Vroom	-18.05%	-32.29%	-3.29%

Institutional and Insider Ownership

25.8% of Vroom shares are owned by institutional investors. 1.5% of Vroom shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Curtiss Motorcycles has a beta of -10.23, suggesting that its share price is 1,123% less volatile than the S&P 500. Comparatively, Vroom has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Summary

Vroom beats Curtiss Motorcycles on 5 of the 8 factors compared between the two stocks.

About Curtiss Motorcycles

Curtiss Motorcycles Company, Inc. engages in the design, manufacture, assembly, and sale of handcrafted street motorcycles for high net worth customers in the United States. The company offers the X132 Hellcat Speedster, as well as preproduction models, such as the P51 Combat Fighter and the Wraith Tandem Lusso motorcycles. It also provides motorcycle related products, including various wearing apparel and other related accessories displaying the Confederate name through its Website. The company was formerly known as Confederate Motors, Inc. and changed its name to Curtiss Motorcycles Company, Inc. in January 2018. Curtiss Motorcycles Company, Inc. was founded in 1991 and is based in Birmingham, Alabama.

About Vroom

Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.