Bumble (NASDAQ:BMBL) versus TrueCar (NASDAQ:TRUE) Head to Head Contrast

Bumble (NASDAQ:BMBL) and TrueCar (NASDAQ:TRUE) are both small-cap computer and technology companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Institutional & Insider Ownership

94.8% of Bumble shares are owned by institutional investors. Comparatively, 79.4% of TrueCar shares are owned by institutional investors. 7.8% of Bumble shares are owned by company insiders. Comparatively, 3.3% of TrueCar shares are owned by company 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.

Valuation and Earnings

This table compares Bumble and TrueCar”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bumble	$1.09 billion	0.79	-$4.21 million	$0.17	39.76
TrueCar	$158.71 million	2.12	-$49.77 million	($0.32)	-11.56

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

Analyst Recommendations

This is a breakdown of current recommendations for Bumble and TrueCar, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bumble	1	14	3	0	2.11
TrueCar	0	0	3	0	3.00

Bumble currently has a consensus price target of $8.50, suggesting a potential upside of 25.74%. TrueCar has a consensus price target of $4.50, suggesting a potential upside of 21.62%. Given Bumble’s higher probable upside, research analysts plainly believe Bumble is more favorable than TrueCar.

Profitability

This table compares Bumble and TrueCar’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bumble	3.93%	1.82%	1.18%
TrueCar	-17.63%	-14.10%	-11.03%

Risk and Volatility

Bumble has a beta of 1.66, indicating that its share price is 66% more volatile than the S&P 500. Comparatively, TrueCar has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Summary

Bumble beats TrueCar on 10 of the 13 factors compared between the two stocks.

About Bumble

Bumble Inc. provides online dating and social networking platforms in North America, Europe, internationally. It owns and operates websites and applications that offers subscription and in-app purchases dating products. The company operates apps, including Bumble, a dating app built with women at the center, where women make the first move; Badoo, the web and mobile free-to-use dating app; Official app where users connect their profile with that of their partner enabling a shared, linked product experience; Bumble BFF and Bumble Bizz Modes that have a format similar to the date mode requiring users to set up profiles and matching users through yes and no votes, similar to the dating platform; and Bumble for Friends, a friendship app where people in all stages of life can meet people nearby and create meaningful platonic connections, as well as Fruitz app is centered around encouraging honesty and transparency by sharing dating intentions from the first touch point. Bumble Inc. was founded in 2006 in and is headquartered in Austin, Texas.

About TrueCar

TrueCar, Inc. operates as an internet-based information, technology, and communication services company in the United States. It operates its platform on the TrueCar website and mobile applications. Its platform enables users to obtain market-based pricing data on new and used cars, and to connect with its network of TrueCar certified dealers. The company also offers forecast and consulting services regarding determination of the residual value of an automobile at given future points in time, which are used to underwrite automotive loans and leases, and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. In addition, it provides TrueCar Trade, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. The company was incorporated in 2005 and is headquartered in Santa Monica, California.