Head to Head Comparison: GTY Technology (NASDAQ:GTYH) versus Cars.com (NYSE:CARS)

Cars.com (NYSE:CARS) and GTY Technology (NASDAQ:GTYH) 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 profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Cars.com and GTY Technology, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cars.com 0 2 6 0 2.75
GTY Technology 0 0 2 0 3.00

Cars.com currently has a consensus price target of $12.00, suggesting a potential downside of 10.04%. GTY Technology has a consensus price target of $8.00, suggesting a potential upside of 34.23%. Given GTY Technology’s stronger consensus rating and higher possible upside, analysts plainly believe GTY Technology is more favorable than Cars.com.

Insider & Institutional Ownership

95.6% of Cars.com shares are held by institutional investors. Comparatively, 37.2% of GTY Technology shares are held by institutional investors. 0.5% of Cars.com shares are held by insiders. Comparatively, 17.2% of GTY Technology shares are held by 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.

Volatility and Risk

Cars.com has a beta of 2.41, indicating that its share price is 141% more volatile than the S&P 500. Comparatively, GTY Technology has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Cars.com -151.54% 17.78% 7.01%
GTY Technology -78.50% -0.45% -0.33%

Earnings & Valuation

This table compares Cars.com and GTY Technology’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 1.48 -$445.32 million $1.45 9.20
GTY Technology $36.44 million 9.02 -$97.37 million N/A N/A

GTY Technology has lower revenue, but higher earnings than Cars.com.

Summary

Cars.com beats GTY Technology on 7 of the 13 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.

GTY Technology Company Profile

GTY Technology Holdings Inc. operates as a software-as-a-service (SaaS) company that offers a cloud-based suite of solutions for the public sector in North America. The company develops software technologies for the procurement and vendor or supplier sourcing industry in government, public sector, and various highly-regulated commercial vertical markets; and content, digital services, and integrated payments via a SaaS platform for government agencies and utility companies. It also develops cloud-based grants management and cost allocation software for state, local, and tribal governments; builds software to streamline municipal permissions and licenses; offers budgeting software, performance management, and transparency and data visualization solutions; and provides public sector budgeting software and consulting services. GTY Technology Holdings Inc. was founded in 2016 and is headquartered in Las Vegas, Nevada.

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