Analyzing Chineseinvestors.Com (OTCMKTS:CIIX) and TrueCar (NASDAQ:TRUE)

Chineseinvestors.Com (OTCMKTS:CIIX) and TrueCar (NASDAQ:TRUE) are both computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Valuation and Earnings

This table compares Chineseinvestors.Com and TrueCar”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chineseinvestors.Com	N/A	N/A	N/A	N/A	N/A
TrueCar	$181.22 million	1.25	-$31.05 million	($0.22)	-11.55

Chineseinvestors.Com has higher earnings, but lower revenue than TrueCar.

Profitability

This table compares Chineseinvestors.Com and TrueCar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chineseinvestors.Com	N/A	N/A	N/A
TrueCar	-10.27%	-23.76%	-18.02%

Analyst Ratings

This is a summary of recent ratings for Chineseinvestors.Com and TrueCar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chineseinvestors.Com	0	0	0	0	0.00
TrueCar	2	5	0	0	1.71

TrueCar has a consensus price target of $2.65, indicating a potential upside of 4.33%. Given TrueCar’s stronger consensus rating and higher possible upside, analysts clearly believe TrueCar is more favorable than Chineseinvestors.Com.

Institutional and Insider Ownership

79.4% of TrueCar shares are owned by institutional investors. 3.9% of TrueCar shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

TrueCar beats Chineseinvestors.Com on 5 of the 8 factors compared between the two stocks.

About Chineseinvestors.Com

Chineseinvestors.com, Inc. engages in the provision of Chinese language web-based real-time financial information. Its services include real-time market commentary, analysis, and educational-related services in Chinese language character sets, support services, consultancy services to smaller private companies considering becoming a public company, and advertising and public relation-related support services. The company was founded by Wei Wang on January 6, 1997 and is headquartered in San Gabriel, CA.

About TrueCar

TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. In addition, it provides TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. The company was incorporated in 2005 and is headquartered in Santa Monica, California.