Comparing CyberAgent (OTCMKTS:CYAGF) and TrueCar (NASDAQ:TRUE)

CyberAgent (OTCMKTS:CYAGF) and TrueCar (NASDAQ:TRUE) are both computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Valuation & Earnings

This table compares CyberAgent and TrueCar”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CyberAgent	$5.86 billion	0.63	$212.17 million	$0.50	14.49
TrueCar	$181.22 million	1.25	-$31.05 million	($0.22)	-11.55

CyberAgent has higher revenue and earnings than TrueCar. TrueCar is trading at a lower price-to-earnings ratio than CyberAgent, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CyberAgent and TrueCar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CyberAgent	4.31%	16.76%	8.48%
TrueCar	-10.27%	-23.76%	-18.02%

Analyst Ratings

This is a summary of current ratings and recommmendations for CyberAgent and TrueCar, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CyberAgent	0	0	0	0	0.00
TrueCar	1	5	0	0	1.83

TrueCar has a consensus price target of $2.65, indicating a potential upside of 4.33%. Given TrueCar’s stronger consensus rating and higher possible upside, analysts plainly believe TrueCar is more favorable than CyberAgent.

Insider & Institutional Ownership

79.4% of TrueCar shares are held by institutional investors. 3.9% of TrueCar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

CyberAgent has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, TrueCar has a beta of 2.22, suggesting that its stock price is 122% more volatile than the S&P 500.

Summary

CyberAgent beats TrueCar on 7 of the 13 factors compared between the two stocks.

About CyberAgent

CyberAgent, Inc. engages in the media, internet advertising, game, and investment development businesses primarily in Japan. The company operates Ameba, a blog service; Tapple for online dating; AWA, a music streaming service; and WinTicket for online betting. It also offers internet advertising agency and ad technology services; and smartphone games. In addition, the company operates a programming school for kids and provides application and reward points exchange platform services; artificial intelligence services; and digital transformation services. CyberAgent, Inc. was incorporated in 1998 and is headquartered in Tokyo, Japan.

About TrueCar

TrueCar, Inc. 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. 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. The company also offers forecast and consulting 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. In addition, it provides TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. The company was incorporated in 2005 and is headquartered in Santa Monica, California.