Head to Head Survey: TrueCar (TRUE) and The Competition

TrueCar (NASDAQ: TRUE) is one of 50 publicly-traded companies in the “Internet Services” industry, but how does it weigh in compared to its rivals? We will compare TrueCar to related companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for TrueCar and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TrueCar 0 3 7 0 2.70
TrueCar Competitors 395 1534 2584 84 2.51

TrueCar presently has a consensus target price of $18.50, indicating a potential upside of 15.55%. As a group, “Internet Services” companies have a potential upside of 2.70%. Given TrueCar’s stronger consensus rating and higher probable upside, analysts clearly believe TrueCar is more favorable than its rivals.

Earnings and Valuation

This table compares TrueCar and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
TrueCar $306.80 million -$16.51 million -45.74
TrueCar Competitors $942.22 million $116.70 million 55.47

TrueCar’s rivals have higher revenue and earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

91.7% of TrueCar shares are held by institutional investors. Comparatively, 73.9% of shares of all “Internet Services” companies are held by institutional investors. 15.5% of TrueCar shares are held by company insiders. Comparatively, 19.5% of shares of all “Internet Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares TrueCar and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TrueCar -9.86% -11.00% -8.49%
TrueCar Competitors -0.14% 26.79% 6.18%

Risk and Volatility

TrueCar has a beta of 2.95, suggesting that its stock price is 195% more volatile than the S&P 500. Comparatively, TrueCar’s rivals have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.

Summary

TrueCar rivals beat TrueCar on 7 of the 12 factors compared.

About TrueCar

TrueCar, Inc. is an Internet-based information, technology, and communication services company. The Company has a data-driven online platform, which features market data and analytics. The Company-branded platform is available on its TrueCar Website and mobile applications. It customizes and operates its platform on a co-branded basis for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for a range of enterprises. The Company enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar Certified Dealers. Its network of over 13,000 TrueCar Certified Dealers consists primarily of new car franchises, as well as independent dealers selling used vehicles. Its subsidiary, ALG, Inc., provides forecasts and consulting services regarding determination of the residual value of an automobile at given future points in time.

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