Cars.com (NYSE:CARS – Get Free Report) and Adit EdTech Acquisition (NYSE:ADEX – Get Free Report) 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 institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Volatility and Risk
Cars.com has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500. Comparatively, Adit EdTech Acquisition has a beta of -0.33, indicating that its share price is 133% less volatile than the S&P 500.
Profitability
This table compares Cars.com and Adit EdTech Acquisition’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Cars.com | 15.34% | 22.28% | 9.57% |
Adit EdTech Acquisition | N/A | N/A | -41.90% |
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Cars.com | $689.18 million | 1.89 | $118.44 million | $1.57 | 12.53 |
Adit EdTech Acquisition | $19.62 million | 2.44 | -$18.66 million | N/A | N/A |
Cars.com has higher revenue and earnings than Adit EdTech Acquisition.
Insider & Institutional Ownership
89.2% of Cars.com shares are held by institutional investors. Comparatively, 0.8% of Adit EdTech Acquisition shares are held by institutional investors. 2.1% of Cars.com shares are held by insiders. Comparatively, 0.3% of Adit EdTech Acquisition shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Cars.com and Adit EdTech Acquisition, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Cars.com | 0 | 1 | 3 | 0 | 2.75 |
Adit EdTech Acquisition | 0 | 0 | 0 | 0 | N/A |
Cars.com presently has a consensus target price of $24.00, suggesting a potential upside of 22.01%. Given Cars.com’s higher possible upside, equities analysts clearly believe Cars.com is more favorable than Adit EdTech Acquisition.
Summary
Cars.com beats Adit EdTech Acquisition on 10 of the 11 factors compared between the two stocks.
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.
About Adit EdTech Acquisition
Adit EdTech Acquisition Corp. does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses or entities. Adit EdTech Acquisition Corp. was incorporated in 2020 and is based in New York, New York. Adit EdTech Acquisition Corp. operates as a subsidiary of Adit Edtech Sponsor, LLC.
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