ECD Automotive Design (NASDAQ:ECDA – Get Free Report) and Vroom (NASDAQ:VRM – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Institutional & Insider Ownership
94.8% of ECD Automotive Design shares are owned by institutional investors. Comparatively, 25.8% of Vroom shares are owned by institutional investors. 17.8% of ECD Automotive Design shares are owned by insiders. Comparatively, 1.5% of Vroom 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.
Valuation and Earnings
This table compares ECD Automotive Design and Vroom”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ECD Automotive Design | $24.50 million | 0.00 | -$10.77 million | ($53.00) | 0.00 |
| Vroom | $178.83 million | 0.48 | -$7.96 million | ($8.64) | -1.92 |
Vroom has higher revenue and earnings than ECD Automotive Design. Vroom is trading at a lower price-to-earnings ratio than ECD Automotive Design, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
ECD Automotive Design has a beta of 0.16, suggesting that its share price is 84% 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.
Analyst Ratings
This is a summary of current recommendations and price targets for ECD Automotive Design and Vroom, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ECD Automotive Design | 1 | 0 | 0 | 0 | 1.00 |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
Profitability
This table compares ECD Automotive Design and Vroom’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ECD Automotive Design | -33.06% | N/A | -52.37% |
| Vroom | -4.45% | -4.47% | -0.64% |
Summary
Vroom beats ECD Automotive Design on 7 of the 11 factors compared between the two stocks.
About ECD Automotive Design
ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.
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.
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