Financial Analysis: E Automotive (OTCMKTS:EICCF) vs. ACV Auctions (NASDAQ:ACVA)

E Automotive (OTCMKTS:EICCF) and ACV Auctions (NASDAQ:ACVA) are both consumer cyclical companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Earnings and Valuation

This table compares E Automotive and ACV Auctions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
E Automotive	N/A	N/A	N/A	N/A	N/A
ACV Auctions	$543.70 million	5.83	-$75.26 million	($0.48)	-40.00

E Automotive has higher earnings, but lower revenue than ACV Auctions.

Insider and Institutional Ownership

88.6% of ACV Auctions shares are held by institutional investors. 8.5% of ACV Auctions shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares E Automotive and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
E Automotive	N/A	N/A	N/A
ACV Auctions	-14.53%	-13.20%	-6.17%

Analyst Ratings

This is a summary of recent ratings and price targets for E Automotive and ACV Auctions, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
E Automotive	0	0	0	0	N/A
ACV Auctions	0	2	5	0	2.71

ACV Auctions has a consensus target price of $21.57, suggesting a potential upside of 12.35%. Given ACV Auctions’ higher possible upside, analysts clearly believe ACV Auctions is more favorable than E Automotive.

Summary

ACV Auctions beats E Automotive on 5 of the 8 factors compared between the two stocks.

About E Automotive

E Automotive Inc. engages in the provision of a wholesale auction marketplace, and engages in developing, marketing, and distributing digital retailing software supporting the automotive industry in Canada and the United States. The company operates its digital wholesale marketplace platforms under EBlock and EDealer brands, which helps the dealers to provide online wholesale vehicle auctions where buyers connect with sellers, to track vehicle inventory and make inventory available in their digital showroom, on their website, and through other third-party consumer-facing online properties, as well as assists dealers with lead management and other consumer-facing activities. It also develops, markets, and distributes digital retailing solutions for the automotive industry, as well as provides inventory merchandising and marketing software. The company was formerly known as eSquared Holdings Inc. and changed its name to E Automotive Inc. in December 2019. E Automotive Inc. was incorporated in 2017 and is headquartered in Toronto, Canada.

About ACV Auctions

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company’s marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green’s seller assurance service for against claims related to defects in the vehicle. It also provides remarketing centers, which offers value-added services, such as vehicle reconditioning and storage for dealers and commercial partners. In addition, the company offers data services, including True360 report, which provides cosmetic and structural vehicle assessments integrated into vehicle history reports for dealer to make wholesale and retail transaction decisions on and off the marketplace; ACV market report provides transaction data and condition reports for comparable used vehicles, including pricing data from third-party sources and allows dealers to determine pricing and valuation strategies for used vehicles; and ACV MAX inventory management software enables dealers to manage their inventory and set pricing while turning vehicles. Further, it provides data and technology through inspection, such as condition reports, virtual lift solutions, apex device, and vehicle intelligence platform; and marketplace enablement, comprising MyACV application, private marketplaces, operations automation, live appraisals, and programmatic buying service. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.