Blucora (BCOR) & CarGurus (CARG) Critical Analysis
Blucora (NASDAQ: BCOR) and CarGurus (NASDAQ:CARG) are both business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Earnings and Valuation
This table compares Blucora and CarGurus’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blucora||$455.91 million||2.26||-$65.15 million||($0.09)||-247.75|
This is a summary of current ratings for Blucora and CarGurus, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Blucora currently has a consensus price target of $27.67, suggesting a potential upside of 24.07%. CarGurus has a consensus price target of $29.50, suggesting a potential upside of 0.34%. Given Blucora’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Blucora is more favorable than CarGurus.
Institutional and Insider Ownership
90.4% of Blucora shares are held by institutional investors. Comparatively, 23.0% of CarGurus shares are held by institutional investors. 14.1% of Blucora shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This table compares Blucora and CarGurus’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Blucora beats CarGurus on 8 of the 9 factors compared between the two stocks.
Blucora, Inc. is a provider of technology-enabled financial solutions to consumers, small business owners and tax professionals. The Company operates through the Wealth Management and Tax Preparation segments. The Company’s Wealth Management segment consists of HD Vest, which provides financial advisors with an integrated platform of brokerage, investment advisory and insurance services to assist in making each financial advisor a financial service center for his/her clients The Company’s Tax Preparation segment provides digital do-it-yourself (DDIY) tax preparation solutions for consumers, small business owners and tax professionals. TaxAct, a provider of digital tax preparation solutions. HD Vest’s specialized model provides an open-architecture investment platform and technology tools to help financial advisors identify investment opportunities for their clients. TaxAct offers pricing and packaging options for tax professionals.
CarGurus, Inc. is an online automotive marketplace connecting buyers and sellers of new and used cars. Using proprietary technology, search algorithms, and data analytics. The Company’s marketplace empowers users with unbiased third-party validation on pricing and dealer reputation as well as other information that aids them in finding Great Deals from Great Dealers. In addition to the United States, the Company operates online marketplaces in Canada, the United Kingdom, and Germany. The Company’s products include Consumer Marketplace, Dealer Marketplace, Dealer Dashboard, Dealer Advertising and Customer Acquisition Products, Auto Manufacturer and Other Advertiser Products.
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