Cars.com (NYSE:CARS – Get Free Report) and Phoenix New Media (NYSE:FENG – Get Free Report) are both small-cap communication services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Valuation & Earnings
This table compares Cars.com and Phoenix New Media”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cars.com | $723.24 million | 0.84 | $20.05 million | $0.57 | 19.88 |
| Phoenix New Media | $109.47 million | 0.16 | $50,000.00 | $0.36 | 4.01 |
Institutional & Insider Ownership
89.2% of Cars.com shares are held by institutional investors. Comparatively, 6.3% of Phoenix New Media shares are held by institutional investors. 3.4% of Cars.com shares are held by insiders. Comparatively, 10.9% of Phoenix New Media shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Cars.com and Phoenix New Media’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% |
| Phoenix New Media | 3.62% | 2.78% | 1.87% |
Analyst Ratings
This is a breakdown of recent ratings for Cars.com and Phoenix New Media, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cars.com | 0 | 5 | 3 | 0 | 2.38 |
| Phoenix New Media | 1 | 0 | 0 | 0 | 1.00 |
Cars.com presently has a consensus target price of $14.83, indicating a potential upside of 30.91%. Given Cars.com’s stronger consensus rating and higher probable upside, research analysts clearly believe Cars.com is more favorable than Phoenix New Media.
Volatility and Risk
Cars.com has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Phoenix New Media has a beta of -0.19, meaning that its stock price is 119% less volatile than the S&P 500.
Summary
Cars.com beats Phoenix New Media on 13 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 Phoenix New Media
Phoenix New Media Limited provides content on an integrated Internet platform in the People's Republic of China. The company operates through two segments, Net Advertising Services and Paid Services. It offers content and services through PC channel, mobile channel, and telecom operators, as well as transmits content to TV viewers, primarily through Phoenix TV. The company, through its website, ifeng.com, provides various interest-based content verticals, such as news, finance, video, automobiles, technology, entertainment, military, real estate, fashion, and sport; and offers interactive services, including comments posting and user surveys. Its mobile channel consists of ifeng News, a news application that provides newsfeeds and other contents in the form of text, image, live streaming, and video; ifeng Video, a video application, which offers video news, live broadcasting, Phoenix TV programs content, etc.; i.ifeng.com mobile Internet website; and digital reading applications. In addition, Phoenix New Media Limited offers mobile newspaper, mobile video, and mobile game services, as well as wireless value-added services. The company was incorporated in 1998 and is headquartered in Beijing, the People's Republic of China. Phoenix New Media Limited is a subsidiary of Phoenix Satellite Television (B.V.I.) Holding Limited.
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