Cars.com vs TrueCar Which Is More Attractive?

Cars.com and TrueCar are two prominent players in the automotive industry, providing online platforms for car buyers and sellers. Both companies offer services that help streamline the car buying process, but their approaches and business models differ. Cars.com, founded in 1998, primarily focuses on connecting consumers with dealerships, while TrueCar, established in 2005, provides pricing transparency and data-driven insights to empower buyers. Investors looking to capitalize on the evolving automotive market may consider comparing the stocks of these two industry leaders.

Cars.com or TrueCar?

When comparing Cars.com and TrueCar, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Cars.com and TrueCar.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Cars.com has a dividend yield of -%, while TrueCar has a dividend yield of 0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Cars.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, TrueCar reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Cars.com P/E ratio at 32.67 and TrueCar's P/E ratio at 0.00. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Cars.com P/B ratio is 2.55 while TrueCar's P/B ratio is 0.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Cars.com has seen a 5-year revenue growth of 0.10%, while TrueCar's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Cars.com's ROE at 7.95% and TrueCar's ROE at 0.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $18.61 for Cars.com and $0.00 for TrueCar. Over the past year, Cars.com's prices ranged from $15.05 to $21.24, with a yearly change of 41.13%. TrueCar's prices fluctuated between $0.00 and $0.00, with a yearly change of 0.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.