Phoenix New Media (NYSE:FENG – Get Free Report) and Cars.com (NYSE:CARS – Get Free Report) are both small-cap communication services companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Volatility & Risk
Phoenix New Media has a beta of -0.19, meaning that its stock price is 119% less volatile than the S&P 500. Comparatively, Cars.com has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500.
Institutional and Insider Ownership
6.3% of Phoenix New Media shares are owned by institutional investors. Comparatively, 89.2% of Cars.com shares are owned by institutional investors. 10.9% of Phoenix New Media shares are owned by company insiders. Comparatively, 3.4% of Cars.com shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phoenix New Media | 1 | 0 | 0 | 0 | 1.00 |
| Cars.com | 0 | 5 | 3 | 0 | 2.38 |
Cars.com has a consensus target price of $14.83, indicating a potential upside of 26.56%. Given Cars.com’s stronger consensus rating and higher possible upside, analysts plainly believe Cars.com is more favorable than Phoenix New Media.
Valuation & Earnings
This table compares Phoenix New Media and Cars.com”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phoenix New Media | $109.47 million | 0.16 | $50,000.00 | $0.36 | 4.10 |
| Cars.com | $725.63 million | 0.86 | $20.05 million | $0.57 | 20.56 |
Cars.com has higher revenue and earnings than Phoenix New Media. Phoenix New Media is trading at a lower price-to-earnings ratio than Cars.com, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Phoenix New Media and Cars.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Phoenix New Media | 3.62% | 2.78% | 1.87% |
| Cars.com | 4.73% | 18.82% | 8.31% |
Summary
Cars.com beats Phoenix New Media on 13 of the 14 factors compared between the two stocks.
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.
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.
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