Vroom (VRM) vs. Its Competitors Critical Contrast

Vroom (NASDAQ: VRM) is one of 29 public companies in the “Automotive dealers & gasoline service stations” industry, but how does it weigh in compared to its competitors? We will compare Vroom to similar businesses based on the strength of its earnings, analyst recommendations, risk, dividends, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Vroom and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vroom 2 3 13 0 2.61
Vroom Competitors 205 1089 1338 46 2.46

Vroom presently has a consensus target price of $57.00, indicating a potential upside of 29.96%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 6.26%. Given Vroom’s stronger consensus rating and higher possible upside, equities analysts clearly believe Vroom is more favorable than its competitors.

Profitability

This table compares Vroom and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vroom -15.19% -19.28% -14.27%
Vroom Competitors 3.54% 134.64% 5.39%

Institutional and Insider Ownership

88.9% of Vroom shares are owned by institutional investors. Comparatively, 55.0% of shares of all “Automotive dealers & gasoline service stations” companies are owned by institutional investors. 17.4% of Vroom shares are owned by insiders. Comparatively, 18.4% of shares of all “Automotive dealers & gasoline service stations” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Vroom and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vroom $1.36 billion -$202.80 million -17.96
Vroom Competitors $6.49 billion $175.08 million 4.92

Vroom’s competitors have higher revenue and earnings than Vroom. Vroom is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Vroom competitors beat Vroom on 8 of the 12 factors compared.

About Vroom

Vroom, Inc. operates an e-commerce platform for buying and selling of new and used cars in the United States. It also offers financing solutions. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. The company was incorporated in 2012 and is headquartered in New York, New York.

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