Comparing ACV Auctions (NASDAQ:ACVA) & Future FinTech Group (NASDAQ:FTFT)

Future FinTech Group (NASDAQ:FTFT) and ACV Auctions (NASDAQ:ACVA) are both retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Profitability

This table compares Future FinTech Group and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Future FinTech Group	-95.03%	-71.02%	-51.19%
ACV Auctions	-15.28%	-13.50%	-6.50%

Institutional and Insider Ownership

0.2% of Future FinTech Group shares are owned by institutional investors. Comparatively, 88.6% of ACV Auctions shares are owned by institutional investors. 7.1% of Future FinTech Group shares are owned by company insiders. Comparatively, 8.5% of ACV Auctions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Future FinTech Group and ACV Auctions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Future FinTech Group	0	0	0	0	N/A
ACV Auctions	0	1	5	0	2.83

ACV Auctions has a consensus target price of $21.00, suggesting a potential upside of 10.53%. Given ACV Auctions’ higher possible upside, analysts clearly believe ACV Auctions is more favorable than Future FinTech Group.

Valuation and Earnings

This table compares Future FinTech Group and ACV Auctions’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Future FinTech Group	$36.62 million	0.17	-$33.65 million	N/A	N/A
ACV Auctions	$543.70 million	5.77	-$75.26 million	($0.48)	-39.58

Future FinTech Group has higher earnings, but lower revenue than ACV Auctions.

Volatility & Risk

Future FinTech Group has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, ACV Auctions has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Summary

ACV Auctions beats Future FinTech Group on 10 of the 11 factors compared between the two stocks.

About Future FinTech Group

Future FinTech Group Inc., through its subsidiaries, operates online shopping platforms in People's Republic of China. It operates in four segments: Shared Shopping Mall Membership Fee, Fruit Related Products, Sales of Goods, and Others. The company operates Chain Cloud Mall (CCM), a real-name blockchain based e-commerce platform that integrates blockchain and internet technology; and NONOGIRL, a cross-border e-commerce platform. It also engages in coal and aluminum ingots supply chain financing and trading; financial technology service; and cryptocurrency market data and information service businesses, as well as services related to the application and development of blockchain-based technology in financial technology. The company was formerly known as SkyPeople Fruit Juice, Inc. and changed its name to Future FinTech Group Inc. in June 2017. Future FinTech Group Inc. is headquartered in New York, New York.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company's marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green's seller assurance service for against claims related to defects in the vehicle. It also provides remarketing centers, which offers value-added services, such as vehicle reconditioning and storage for dealers and commercial partners. In addition, the company offers data services, including True360 report, which provides cosmetic and structural vehicle assessments integrated into vehicle history reports for dealer to make wholesale and retail transaction decisions on and off the marketplace; ACV market report provides transaction data and condition reports for comparable used vehicles, including pricing data from third-party sources and allows dealers to determine pricing and valuation strategies for used vehicles; and ACV MAX inventory management software enables dealers to manage their inventory and set pricing while turning vehicles. Further, it provides data and technology through inspection, such as condition reports, virtual lift solutions, apex device, and vehicle intelligence platform; and marketplace enablement, comprising MyACV application, private marketplaces, operations automation, live appraisals, and programmatic buying service. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.