Vroom (NASDAQ:VRM – Get Free Report) is one of 120 publicly-traded companies in the “Consumer Finance” industry, but how does it contrast to its competitors? We will compare Vroom to related businesses based on the strength of its dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.
Risk & Volatility
Vroom has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, Vroom’s competitors have a beta of 1.24, indicating that their average stock price is 24% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and target prices for Vroom and its competitors, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vroom | 1 | 0 | 0 | 0 | 1.00 |
| Vroom Competitors | 887 | 3341 | 5265 | 274 | 2.50 |
As a group, “Consumer Finance” companies have a potential upside of 21.71%. Given Vroom’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Vroom has less favorable growth aspects than its competitors.
Earnings & Valuation
This table compares Vroom and its competitors top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Vroom | $178.83 million | -$7.96 million | -0.63 |
| Vroom Competitors | $3.95 billion | $385.17 million | 5.90 |
Vroom’s competitors have higher revenue and earnings than Vroom. Vroom is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Institutional & Insider Ownership
25.8% of Vroom shares are owned by institutional investors. Comparatively, 46.0% of shares of all “Consumer Finance” companies are owned by institutional investors. 2.9% of Vroom shares are owned by insiders. Comparatively, 22.1% of shares of all “Consumer Finance” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Vroom and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vroom | -32.38% | -47.65% | -5.59% |
| Vroom Competitors | 10.06% | -15.63% | 2.15% |
Summary
Vroom competitors beat Vroom on 11 of the 12 factors compared.
About Vroom
Vroom, Inc. operates as an automotive finance company. The company offers vehicle financing to its customers through third party dealers under the UACC brand. It also provides artificial intelligence powered analytics and digital services to dealers, automotive financial services companies, and others in the automotive industry for automotive retail. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. Vroom, Inc. was incorporated in 2012 and is based in Houston, Texas.
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