Analyzing Match Group (MTCH) & Autoweb (AUTO)

Match Group (NASDAQ:MTCH) and Autoweb (NASDAQ:AUTO) are both computer and technology companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Valuation and Earnings

This table compares Match Group and Autoweb’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Match Group $1.33 billion 8.33 $350.14 million $0.52 76.67
Autoweb $142.13 million 0.19 -$64.96 million $0.29 7.28

Match Group has higher revenue and earnings than Autoweb. Autoweb is trading at a lower price-to-earnings ratio than Match Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Match Group and Autoweb’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Match Group 21.24% 60.95% 15.56%
Autoweb -78.46% -20.99% -15.13%

Institutional & Insider Ownership

23.5% of Match Group shares are held by institutional investors. Comparatively, 32.4% of Autoweb shares are held by institutional investors. 7.0% of Match Group shares are held by insiders. Comparatively, 30.6% of Autoweb shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Match Group has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Autoweb has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and target prices for Match Group and Autoweb, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Match Group 0 5 10 0 2.67
Autoweb 0 3 0 0 2.00

Match Group currently has a consensus target price of $52.31, suggesting a potential upside of 31.20%. Autoweb has a consensus target price of $4.60, suggesting a potential upside of 118.01%. Given Autoweb’s higher possible upside, analysts clearly believe Autoweb is more favorable than Match Group.

Summary

Match Group beats Autoweb on 10 of the 14 factors compared between the two stocks.

Match Group Company Profile

Match Group, Inc. provides dating products. It operates a portfolio of brands, including Tinder, Match, PlentyOfFish, Meetic, OkCupid, OurTime, and Pairs. Match Group, Inc. offers its dating products through its Websites and applications in 42 languages approximately in 190 countries. The company was incorporated in 2009 and is headquartered in Dallas, Texas. Match Group, Inc. is a subsidiary of IAC/InterActiveCorp.

Autoweb Company Profile

AutoWeb, Inc. operates as a digital marketing company for the automotive industry in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its programs. The company's products include new vehicle lead program, which allows consumers to submit requests for pricing and availability of specific makes and models; and used vehicle lead program, which allows consumers to search for used vehicles according to search parameters, such as price, make, model, mileage, year, and location of the vehicle. The company's products and services also comprise WebLeads+ that offers various coupon options, which display marketing messages to consumers visiting the dealer's Website; and Payment Pro, a dealer Website conversion tool that offers consumers real-time online monthly payment information, as well as sells fixed placement advertising across its Website to automotive advertisers. It owns and operates automotive Websites that offers consumers with the information and tools to aid them with their automotive purchase decisions; an automotive search engine that enables manufactures and dealers to optimize advertising campaigns; AutoWeb Traffic Product, a pay-per-click advertising program that offer targeted offers to consumers based on make, model, and geographic location; and AutoWeb consumer traffic referral product that engages car buyers from the AutoWeb's network of automotive Websites to present them with offers based on their make and model of interest, as well as geographic location. The company was formerly known as Autobytel Inc. and changed its name to AutoWeb, Inc. in October 2017. AutoWeb, Inc. was founded in 1995 and is headquartered in Irvine, California.

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