Analyzing Hut 8 Mining (NASDAQ:HUT) & Cars.com (NYSE:CARS)

Cars.com (NYSE:CARSGet Rating) and Hut 8 Mining (NASDAQ:HUTGet Rating) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, analyst recommendations and profitability.

Volatility & Risk

Cars.com has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500. Comparatively, Hut 8 Mining has a beta of 3.27, suggesting that its share price is 227% more volatile than the S&P 500.

Institutional and Insider Ownership

97.4% of Cars.com shares are held by institutional investors. Comparatively, 8.5% of Hut 8 Mining shares are held by institutional investors. 1.5% of Cars.com shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Cars.com and Hut 8 Mining’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cars.com $623.68 million 1.70 $7.72 million $0.01 1,589.59
Hut 8 Mining $138.64 million 2.97 -$58.02 million ($0.77) -2.43

Cars.com has higher revenue and earnings than Hut 8 Mining. Hut 8 Mining is trading at a lower price-to-earnings ratio than Cars.com, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Cars.com and Hut 8 Mining, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cars.com 0 1 2 0 2.67
Hut 8 Mining 0 3 2 0 2.40

Cars.com currently has a consensus price target of $17.75, indicating a potential upside of 11.78%. Hut 8 Mining has a consensus price target of $5.38, indicating a potential upside of 187.43%. Given Hut 8 Mining’s higher probable upside, analysts plainly believe Hut 8 Mining is more favorable than Cars.com.

Profitability

This table compares Cars.com and Hut 8 Mining’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cars.com 0.15% 0.26% 0.09%
Hut 8 Mining -89.63% -6.75% -5.74%

Summary

Cars.com beats Hut 8 Mining on 9 of the 12 factors compared between the two stocks.

About Cars.com

(Get Rating)

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 Hut 8 Mining

(Get Rating)

Hut 8 Mining Corp. is a cryptocurrency mining and blockchain infrastructure company, which is focused solely on mining bitcoin. It provides investors with direct access to bitcoin, without the technical complexity or constraints of purchasing the underlying cryptocurrency. The company was founded by Andrew Kiguel on June 9, 2011 and is headquartered in Toronto, Canada.

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