TrueCar (NASDAQ:TRUE – Get Rating) and Applied Blockchain (OTCMKTS:APLD – Get Rating) are both small-cap computer and technology companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.
Valuation & Earnings
This table compares TrueCar and Applied Blockchain’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| TrueCar | $231.70 million | 1.13 | -$38.33 million | ($0.43) | -6.53 |
| Applied Blockchain | N/A | N/A | -$570,000.00 | N/A | N/A |
Applied Blockchain has lower revenue, but higher earnings than TrueCar.
Risk and Volatility
TrueCar has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, Applied Blockchain has a beta of 4.68, meaning that its stock price is 368% more volatile than the S&P 500.
Institutional & Insider Ownership
2.7% of Applied Blockchain shares are owned by institutional investors. 3.7% of TrueCar shares are owned by company insiders. Comparatively, 27.5% of Applied Blockchain shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of current ratings and target prices for TrueCar and Applied Blockchain, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| TrueCar | 0 | 5 | 1 | 0 | 2.17 |
| Applied Blockchain | 0 | 0 | 6 | 0 | 3.00 |
TrueCar currently has a consensus target price of $4.31, suggesting a potential upside of 53.47%. Applied Blockchain has a consensus target price of $8.17, suggesting a potential upside of 598.01%. Given Applied Blockchain’s stronger consensus rating and higher probable upside, analysts plainly believe Applied Blockchain is more favorable than TrueCar.
Profitability
This table compares TrueCar and Applied Blockchain’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| TrueCar | -20.14% | -12.45% | -10.53% |
| Applied Blockchain | N/A | N/A | N/A |
Summary
Applied Blockchain beats TrueCar on 10 of the 11 factors compared between the two stocks.
TrueCar Company Profile (Get Rating)
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 accurate, geographically specific, and real-time pricing information for consumers and dealers; 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. TrueCar, Inc. was incorporated in 2005 and is headquartered in Santa Monica, California.
Applied Blockchain Company Profile (Get Rating)
Applied Blockchain, Inc. engages in crypto mining and co-hosting operations. The company was formerly known as Applied Science Products, Inc. and changed its name to Applied Blockchain, Inc. in April 2021. The company is based in Dallas, Texas.
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