Head-To-Head Review: CarGurus (NASDAQ:CARG) & WISeKey International (NASDAQ:WKEY)

CarGurus (NASDAQ:CARG) and WISeKey International (NASDAQ:WKEY) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.

Profitability

This table compares CarGurus and WISeKey International’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%
WISeKey International	N/A	N/A	N/A

Insider and Institutional Ownership

86.9% of CarGurus shares are owned by institutional investors. Comparatively, 0.3% of WISeKey International shares are owned by institutional investors. 17.2% of CarGurus shares are owned by insiders. Comparatively, 33.5% of WISeKey International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for CarGurus and WISeKey International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CarGurus	0	3	7	0	2.70
WISeKey International	0	0	1	0	3.00

CarGurus presently has a consensus target price of $29.35, indicating a potential downside of 6.68%. WISeKey International has a consensus target price of $4.00, indicating a potential upside of 79.37%. Given WISeKey International’s stronger consensus rating and higher possible upside, analysts plainly believe WISeKey International is more favorable than CarGurus.

Earnings and Valuation

This table compares CarGurus and WISeKey International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CarGurus	$877.03 million	3.74	$31.10 million	$0.28	112.32
WISeKey International	$20.99 million	0.72	-$15.36 million	N/A	N/A

CarGurus has higher revenue and earnings than WISeKey International.

Risk & Volatility

CarGurus has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, WISeKey International has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.

Summary

CarGurus beats WISeKey International on 7 of the 12 factors compared between the two stocks.

About CarGurus

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 WISeKey International

WISeKey International Holding AG, a cybersecurity company, provides integrated security solutions in Switzerland, rest of Europe, the Middle East, Africa, North America, the Asia Pacific, and Latin America. The company operates in two segments, IoT and Managed Public Key Infrastructure (mPKI). It offers microcontrollers that provides identity to various connected devices; and mPKI, which include digital identity, certificate management and signing solutions, and trust services, as well as offers digital certificates; software as a service, including cloud-based certificate life-cycle-management and signing and authentication solutions; software licenses; post-contract customer support for cybersecurity applications; and infrastructure hosting and monitoring services. The company also develops, markets, hosts, and supports a range of solutions that enable secure digital identification of people, content, and objects by generating digital identities through its products and services in cybersecurity services, IoT, digital brand management, and mobile security, which enable clients to monetize their existing user bases, as well as expand its eco-system. In addition, it engages in financing, sales, and distribution activities; and sells semiconductors secure chips. The company was founded in 1999 and is headquartered in Zug, Switzerland.