Comparing ASAP (NASDAQ:WTRH) and ACV Auctions (NASDAQ:ACVA)

ACV Auctions (NASDAQ:ACVA) and ASAP (NASDAQ:WTRH) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, profitability, dividends, institutional ownership, risk and earnings.

Profitability

This table compares ACV Auctions and ASAP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ACV Auctions	-12.51%	-12.94%	-5.75%
ASAP	-131.13%	-52.13%	-19.80%

Insider and Institutional Ownership

88.6% of ACV Auctions shares are owned by institutional investors. Comparatively, 26.3% of ASAP shares are owned by institutional investors. 2.9% of ACV Auctions shares are owned by insiders. Comparatively, 14.2% of ASAP shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

ACV Auctions has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, ASAP has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Valuation & Earnings

This table compares ACV Auctions and ASAP”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ACV Auctions	$707.24 million	2.45	-$79.70 million	($0.39)	-25.86
ASAP	$130.00 million	0.00	-$5.23 million	($1.03)	N/A

ASAP has lower revenue, but higher earnings than ACV Auctions. ACV Auctions is trading at a lower price-to-earnings ratio than ASAP, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations and price targets for ACV Auctions and ASAP, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ACV Auctions	0	1	10	0	2.91
ASAP	0	0	0	0	0.00

ACV Auctions presently has a consensus target price of $19.45, suggesting a potential upside of 92.89%. Given ACV Auctions’ stronger consensus rating and higher probable upside, research analysts clearly believe ACV Auctions is more favorable than ASAP.

Summary

ACV Auctions beats ASAP on 10 of the 13 factors compared between the two stocks.

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.

About ASAP

ASAP, Inc. operates an online ordering technology platform in the United States. Its platform allows to order food, alcohol, convenience, grocery, flowers, auto parts, and others. The company's platform also facilitates access to third parties that provide payment processing solutions for restaurants and other merchants. As of June 30, 2022, it had approximately 27,000 restaurants in approximately 1,000 cities. The company was formerly known as Waitr Holdings Inc. and changed its name to ASAP, Inc. in August 2022. ASAP, Inc. was founded in 2013 and is headquartered in Lafayette, Louisiana.