1stdibs.com (NASDAQ:DIBS – Get Free Report) and Cars.com (NYSE:CARS – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.
Insider & Institutional Ownership
67.0% of 1stdibs.com shares are held by institutional investors. Comparatively, 89.2% of Cars.com shares are held by institutional investors. 24.2% of 1stdibs.com shares are held by insiders. Comparatively, 3.4% of Cars.com shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares 1stdibs.com and Cars.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 1stdibs.com | -12.33% | -12.05% | -8.36% |
| Cars.com | 3.73% | 18.12% | 8.07% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 1stdibs.com | $89.62 million | 1.71 | -$13.67 million | ($0.31) | -13.97 |
| Cars.com | $723.24 million | 0.77 | $20.05 million | $0.43 | 23.22 |
Cars.com has higher revenue and earnings than 1stdibs.com. 1stdibs.com is trading at a lower price-to-earnings ratio than Cars.com, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
1stdibs.com has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Cars.com has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for 1stdibs.com and Cars.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 1stdibs.com | 1 | 0 | 1 | 0 | 2.00 |
| Cars.com | 1 | 4 | 3 | 0 | 2.25 |
1stdibs.com presently has a consensus price target of $7.00, indicating a potential upside of 61.66%. Cars.com has a consensus price target of $14.67, indicating a potential upside of 46.89%. Given 1stdibs.com’s higher probable upside, equities research analysts plainly believe 1stdibs.com is more favorable than Cars.com.
Summary
Cars.com beats 1stdibs.com on 11 of the 14 factors compared between the two stocks.
About 1stdibs.com
1stdibs.Com, Inc. operates an online marketplace for luxury design products worldwide. Its marketplace connects customers with sellers and makers of vintage, antique, and contemporary furniture; and home décor, jewelry, watches, art, and fashion products. The company was incorporated in 2000 and is headquartered in New York, New York.
About Cars.com
Cars.com Inc., through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers. It also sells online subscription advertising products to car dealerships by its direct sales force, as well as through its affiliate sales channel. In addition, the company sells display advertising to national advertisers. Further, it offers online automotive marketplace service that connects buyers and sellers through Cars.com, Auto.com, DealerRater.com, NewCars.com, PickupTrucks.com, DealerInspire.com, and LaunchDigitalMarketing.com Websites. Its platform hosts approximately 4.9 million new and used vehicle listings and serves approximately 20,000 franchise and independent car dealers. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.
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