Head to Head Analysis: ACV Auctions (NYSE:ACVA) vs. TIC Solutions (NYSE:TIC)

ACV Auctions (NYSE:ACVA) and TIC Solutions (NYSE:TIC) are both small-cap services companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Valuation & Earnings

This table compares ACV Auctions and TIC Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACV Auctions	$759.61 million	1.17	-$66.14 million	($0.38)	-13.38
TIC Solutions	$1.53 billion	1.29	-$87.12 million	($0.54)	-16.53

ACV Auctions has higher earnings, but lower revenue than TIC Solutions. TIC Solutions is trading at a lower price-to-earnings ratio than ACV Auctions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares ACV Auctions and TIC Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ACV Auctions	-8.71%	-6.17%	-2.38%
TIC Solutions	-5.69%	-4.37%	-2.16%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for ACV Auctions and TIC Solutions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACV Auctions	2	5	6	2	2.53
TIC Solutions	3	2	2	0	1.86

ACV Auctions currently has a consensus target price of $10.45, suggesting a potential upside of 105.51%. TIC Solutions has a consensus target price of $11.00, suggesting a potential upside of 23.24%. Given ACV Auctions’ stronger consensus rating and higher possible upside, equities research analysts plainly believe ACV Auctions is more favorable than TIC Solutions.

Institutional & Insider Ownership

88.6% of ACV Auctions shares are owned by institutional investors. 2.9% of ACV Auctions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

ACV Auctions has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500. Comparatively, TIC Solutions has a beta of 2.46, meaning that its stock price is 146% more volatile than the S&P 500.

Summary

ACV Auctions beats TIC Solutions on 9 of the 15 factors compared between the two stocks.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.

About TIC Solutions

Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component. The company also provides market rope access technician solutions, including inspection and testing, as well as insulation, coatings and blasting, welding, pipe fitting, hoisting and rigging, and electrical services. In addition, its TIC service includes support from consulting engineers with in-lab destructive testing capabilities. The company provides support failure investigation, material selection, corrosion engineering, welding engineering, fracture mechanics, destructive testing, and chemical analysis. It serves a range of industrial markets, primarily chemical, pipeline, refinery, power generation, oilsands, automotive, aerospace, mining, manufacturing, renewable energy, and pulp and paper. The company was founded in 1991 and is headquartered in Tomball, Texas.