Blucora (NASDAQ: BCOR) and TrueCar (NASDAQ:TRUE) are both small-cap technology companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.
This table compares Blucora and TrueCar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares Blucora and TrueCar’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blucora||$509.56 million||2.27||$27.03 million||$1.02||24.26|
|TrueCar||$323.15 million||3.42||-$32.84 million||($0.35)||-31.40|
Blucora has higher revenue and earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than Blucora, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
97.3% of Blucora shares are owned by institutional investors. Comparatively, 89.0% of TrueCar shares are owned by institutional investors. 14.1% of Blucora shares are owned by insiders. Comparatively, 15.5% of TrueCar 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.
Risk and Volatility
Blucora has a beta of -0.1, indicating that its stock price is 110% less volatile than the S&P 500. Comparatively, TrueCar has a beta of 2.52, indicating that its stock price is 152% more volatile than the S&P 500.
This is a summary of recent recommendations for Blucora and TrueCar, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Blucora presently has a consensus target price of $28.33, suggesting a potential upside of 14.48%. TrueCar has a consensus target price of $17.56, suggesting a potential upside of 59.74%. Given TrueCar’s higher probable upside, analysts clearly believe TrueCar is more favorable than Blucora.
Blucora beats TrueCar on 9 of the 14 factors compared between the two stocks.
Blucora Company Profile
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.
TrueCar Company Profile
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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