Phoenix New Media (NYSE:FENG – Get Free Report) and CarGurus (NASDAQ:CARG – Get Free Report) are both communication services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, profitability and valuation.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Phoenix New Media and CarGurus, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Phoenix New Media | 1 | 0 | 0 | 0 | 1.00 |
| CarGurus | 0 | 7 | 7 | 1 | 2.60 |
CarGurus has a consensus price target of $40.45, suggesting a potential upside of 44.77%. Given CarGurus’ stronger consensus rating and higher possible upside, analysts plainly believe CarGurus is more favorable than Phoenix New Media.
Volatility & Risk
Profitability
This table compares Phoenix New Media and CarGurus’ 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% |
| CarGurus | 18.06% | 62.88% | 32.82% |
Institutional and Insider Ownership
6.3% of Phoenix New Media shares are owned by institutional investors. Comparatively, 86.9% of CarGurus shares are owned by institutional investors. 10.9% of Phoenix New Media shares are owned by company insiders. Comparatively, 18.2% of CarGurus shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Phoenix New Media and CarGurus”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Phoenix New Media | $828.75 million | 0.02 | $50,000.00 | $0.36 | 4.03 |
| CarGurus | $906.98 million | 2.74 | $155.90 million | $1.84 | 15.19 |
CarGurus has higher revenue and earnings than Phoenix New Media. Phoenix New Media is trading at a lower price-to-earnings ratio than CarGurus, indicating that it is currently the more affordable of the two stocks.
Summary
CarGurus beats Phoenix New Media on 15 of the 15 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 CarGurus
CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers. It also offers dealer and non-dealer advertising products for its websites and social media platforms. The company operates online marketplaces under the CarGurus brand in the United States, Canada, and the United Kingdom; Autolist and CarOffer brands in the United States; and PistonHeads brand in the United Kingdom. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.
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