Critical Analysis: CarGurus (NASDAQ:CARG) & Life360 (NASDAQ:LIF)

CarGurus (NASDAQ:CARGGet Free Report) and Life360 (NASDAQ:LIFGet Free Report) are both mid-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, profitability, risk and institutional ownership.

Insider and Institutional Ownership

86.9% of CarGurus shares are held by institutional investors. 17.2% of CarGurus shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CarGurus and Life360, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CarGurus 0 3 8 0 2.73
Life360 0 1 6 1 3.00

CarGurus currently has a consensus target price of $30.59, indicating a potential downside of 4.85%. Life360 has a consensus target price of $39.75, indicating a potential downside of 8.26%. Given CarGurus’ higher probable upside, equities analysts plainly believe CarGurus is more favorable than Life360.

Valuation and Earnings

This table compares CarGurus and Life360″s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CarGurus $877.03 million 3.82 $31.10 million $0.28 114.82
Life360 $328.68 million 9.68 -$28.17 million N/A N/A

CarGurus has higher revenue and earnings than Life360.

Profitability

This table compares CarGurus and Life360’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CarGurus -5.57% 11.06% 7.25%
Life360 -9.26% -9.81% -7.59%

Summary

CarGurus beats Life360 on 9 of the 12 factors compared between the two stocks.

About CarGurus

(Get Free Report)

CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers. It also offers dealer and non-dealer advertising products for its websites and social media platforms. The company operates online marketplaces under the CarGurus brand in the United States, Canada, and the United Kingdom; Autolist and CarOffer brands in the United States; and PistonHeads brand in the United Kingdom. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.

About Life360

(Get Free Report)

Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.

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