Blucora (NASDAQ: BCOR) and TrueCar (NASDAQ:TRUE) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Insider and Institutional Ownership
97.0% 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Blucora and TrueCar, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Blucora currently has a consensus target price of $25.31, suggesting a potential upside of 2.88%. TrueCar has a consensus target price of $16.64, suggesting a potential upside of 78.34%. Given TrueCar’s higher probable upside, analysts plainly believe TrueCar is more favorable than Blucora.
Volatility and Risk
Blucora has a beta of -0.12, indicating that its share price is 112% less volatile than the S&P 500. Comparatively, TrueCar has a beta of 2.59, indicating that its share price is 159% more volatile than the S&P 500.
Earnings & Valuation
This table compares Blucora and TrueCar’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blucora||$509.56 million||2.26||$27.03 million||$1.22||20.16|
|TrueCar||$323.15 million||2.90||-$32.84 million||($0.27)||-34.56|
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.
This table compares Blucora and TrueCar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Blucora beats TrueCar on 9 of the 14 factors compared between the two stocks.
Blucora Company Profile
Blucora, Inc. provides technology-enabled financial solutions to consumers, small business owners, and tax professionals in the United States. The company operates through two segments, Wealth Management and Tax Preparation. The Wealth Management segment offers an integrated platform of brokerage, investment advisory, and insurance services to financial advisors. The Tax Preparation segment provides digital do-it-yourself tax preparation solutions for consumers and small business owners through TaxAct.com; and ancillary services, including refund payment transfer, audit defense, stored value cards, retirement investment accounts, tax preparation support services, data archive services, and e-filing services. This segment also offers professional tax preparer software. The company was formerly known as InfoSpace, Inc. and changed its name to Blucora, Inc. in June 2012. Blucora, Inc. was founded in 1996 and is headquartered in Irving, Texas.
TrueCar Company Profile
TrueCar, Inc., together with its subsidiaries, 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. The company also customizes and operates its platform for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for large enterprises. 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. In addition, the company offers forecast, consulting, and other 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. Further, it provides geographically specific and real-time pricing information for consumers and dealers. The company was formerly known as Zag.com Inc. TrueCar, Inc. was founded in 2005 and is headquartered in Santa Monica, California.
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