Analyzing Kaleyra (NYSE:KLR) and Cars.com (NYSE:CARS)

Cars.com (NYSE:CARS) and Kaleyra (NYSE:KLR) are both small-cap retail/wholesale companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Cars.com and Kaleyra, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cars.com 0 3 4 0 2.57
Kaleyra 0 0 6 0 3.00

Cars.com presently has a consensus target price of $10.58, indicating a potential upside of 25.10%. Kaleyra has a consensus target price of $11.63, indicating a potential upside of 56.88%. Given Kaleyra’s stronger consensus rating and higher probable upside, analysts plainly believe Kaleyra is more favorable than Cars.com.

Volatility and Risk

Cars.com has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500. Comparatively, Kaleyra has a beta of 0.33, indicating that its share price is 67% less volatile than the S&P 500.

Insider and Institutional Ownership

96.8% of Cars.com shares are owned by institutional investors. Comparatively, 28.0% of Kaleyra shares are owned by institutional investors. 0.5% of Cars.com shares are owned by company insiders. Comparatively, 17.8% of Kaleyra shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Cars.com and Kaleyra’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cars.com $606.68 million 0.94 -$445.32 million $1.45 5.83
Kaleyra $129.56 million 1.63 -$5.51 million $0.24 30.88

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

Profitability

This table compares Cars.com and Kaleyra’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cars.com -224.10% 11.67% 5.38%
Kaleyra N/A -15.09% 0.57%

Summary

Kaleyra beats Cars.com on 8 of the 14 factors compared between the two stocks.

Cars.com Company Profile

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.

Kaleyra Company Profile

Kaleyra, Inc. is a global group providing mobile communication services for financial institutions and enterprises. The company trough its proprietary platform, it manages multi-channel integrated communication services on a global scale, comprising of messages, push notifications, e-mail, instant messaging, voice services and chatbots. Kaleyra was founded by Dario Calogero in 1999 and is headquartered in Milan, Italy.

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