Grindr (NYSE:GRND) versus Cars.com (NYSE:CARS) Head to Head Analysis

Cars.com (NYSE:CARS) and Grindr (NYSE:GRND) are both communication services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

89.2% of Cars.com shares are owned by institutional investors. Comparatively, 7.2% of Grindr shares are owned by institutional investors. 3.4% of Cars.com shares are owned by insiders. Comparatively, 60.9% of Grindr shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Cars.com has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, Grindr has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Profitability

This table compares Cars.com and Grindr’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cars.com	4.73%	18.82%	8.31%
Grindr	18.75%	357.13%	20.08%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Cars.com and Grindr, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cars.com	0	5	3	0	2.38
Grindr	0	1	6	0	2.86

Cars.com presently has a consensus price target of $14.83, suggesting a potential upside of 48.04%. Grindr has a consensus price target of $20.00, suggesting a potential upside of 40.81%. Given Cars.com’s higher probable upside, equities analysts plainly believe Cars.com is more favorable than Grindr.

Earnings & Valuation

This table compares Cars.com and Grindr”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cars.com	$723.24 million	0.74	$20.05 million	$0.57	17.58
Grindr	$439.90 million	5.61	$94.75 million	$0.50	28.41

Grindr has lower revenue, but higher earnings than Cars.com. Cars.com is trading at a lower price-to-earnings ratio than Grindr, indicating that it is currently the more affordable of the two stocks.

Summary

Grindr beats Cars.com on 9 of the 14 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 Grindr

Grindr Inc. operates social network and dating application for the lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities worldwide. Its platform enables LGBTQ people to find and engage with each other, share content and experiences, and express themselves. The company offers ad-supported service and a premium subscription version. Grindr Inc. was founded in 2009 and is headquartered in West Hollywood, California.