TrueCar (TRUE) Competitors

Red Violet (NASDAQ:RDVT) and TrueCar (NASDAQ:TRUE) are both small-cap computer and technology companies, but which is the superior stock? We will contrast the two companies based on the strength of their community ranking, risk, earnings, dividends, profitability, valuation, analyst recommendations, institutional ownership and media sentiment.

Is RDVT or TRUE more profitable?

Red Violet has a net margin of 7.17% compared to TrueCar's net margin of -17.68%. Red Violet's return on equity of 6.80% beat TrueCar's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Red Violet	7.17%	6.80%	6.28%
TrueCar	-17.68%	-17.54%	-13.79%

Do analysts recommend RDVT or TRUE?

TrueCar has a consensus price target of $4.63, suggesting a potential upside of 206.09%. Given TrueCar's stronger consensus rating and higher possible upside, analysts clearly believe TrueCar is more favorable than Red Violet.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Red Violet	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00
TrueCar	2 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.17

Do insiders and institutionals hold more shares of RDVT or TRUE?

63.6% of Red Violet shares are held by institutional investors. Comparatively, 79.4% of TrueCar shares are held by institutional investors. 9.5% of Red Violet shares are held by insiders. Comparatively, 3.9% of TrueCar shares are held 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.

Which has higher valuation and earnings, RDVT or TRUE?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Red Violet	$75.19M	7.36	$13.53M	$0.50	79.36
TrueCar	$175.60M	0.75	-$49.77M	-$0.34	-4.44

Does the MarketBeat Community prefer RDVT or TRUE?

TrueCar received 450 more outperform votes than Red Violet when rated by MarketBeat users. However, 62.26% of users gave Red Violet an outperform vote while only 59.79% of users gave TrueCar an outperform vote.

Company	Underperform	Outperform
Red Violet	Outperform Votes 66 62.26%	Underperform Votes 40 37.74%
TrueCar	Outperform Votes 516 59.79%	Underperform Votes 347 40.21%

Does the media favor RDVT or TRUE?

In the previous week, Red Violet and Red Violet both had 5 articles in the media. Red Violet's average media sentiment score of 1.50 beat TrueCar's score of 0.86 indicating that Red Violet is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Red Violet	4 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
TrueCar	1 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk & volatility, RDVT or TRUE?

Red Violet has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, TrueCar has a beta of 1.97, indicating that its share price is 97% more volatile than the S&P 500.

Summary

Red Violet beats TrueCar on 10 of the 17 factors compared between the two stocks.