ACV Auctions (NASDAQ:ACVA – Get Free Report) and Accolade (NASDAQ:ACCD – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
Institutional and Insider Ownership
88.6% of ACV Auctions shares are held by institutional investors. Comparatively, 85.0% of Accolade shares are held by institutional investors. 13.7% of ACV Auctions shares are held by insiders. Comparatively, 8.3% of Accolade shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares ACV Auctions and Accolade’s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ACV Auctions | $481.23 million | 6.07 | -$75.26 million | ($0.46) | -38.72 |
| Accolade | $414.29 million | 1.43 | -$99.81 million | ($1.33) | -5.67 |
Volatility and Risk
ACV Auctions has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, Accolade has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for ACV Auctions and Accolade, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ACV Auctions | 0 | 2 | 9 | 0 | 2.82 |
| Accolade | 0 | 4 | 12 | 0 | 2.75 |
ACV Auctions presently has a consensus price target of $20.21, suggesting a potential upside of 13.50%. Accolade has a consensus price target of $14.57, suggesting a potential upside of 93.26%. Given Accolade’s higher probable upside, analysts plainly believe Accolade is more favorable than ACV Auctions.
Profitability
This table compares ACV Auctions and Accolade’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ACV Auctions | -15.64% | -13.97% | -6.89% |
| Accolade | -24.09% | -22.53% | -12.08% |
Summary
ACV Auctions beats Accolade on 10 of the 14 factors compared between the two stocks.
About ACV Auctions
ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company's marketplace platform includes digital marketplace, which connects buyers and sellers by providing online auction, which facilitates real-time transactions of wholesale vehicles; Run List for pre-filtering and pre-screening of vehicles up to 24 hours prior to an auction taking place; ACV transportation service to enable the buyers to see real-time transportation quotes and status reports of the vehicle; ACV capital, a short-term inventory financing services for buyers to purchase vehicles; and Go Green's seller assurance service for against claims related to defects in the vehicle. It also provides remarketing centers, which offers value-added services, such as vehicle reconditioning and storage for dealers and commercial partners. In addition, the company offers data services, including True360 report, which provides cosmetic and structural vehicle assessments integrated into vehicle history reports for dealer to make wholesale and retail transaction decisions on and off the marketplace; ACV market report provides transaction data and condition reports for comparable used vehicles, including pricing data from third-party sources and allows dealers to determine pricing and valuation strategies for used vehicles; and ACV MAX inventory management software enables dealers to manage their inventory and set pricing while turning vehicles. Further, it provides data and technology through inspection, such as condition reports, virtual lift solutions, apex device, and vehicle intelligence platform; and marketplace enablement, comprising MyACV application, private marketplaces, operations automation, live appraisals, and programmatic buying service. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.
About Accolade
Accolade, Inc., together with its subsidiaries, engages in the development and provision of personalized and technology-enabled solutions that help people to understand, navigate, and utilize the healthcare system and their workplace benefits in the United States. The company offers a platform with cloud-based technology and multimodal support from a team of health assistants and clinicians, including registered nurses, physician medical directors, pharmacists, behavioral health specialists, women's health specialists, case management specialists, expert medical opinion providers, and virtual primary care physicians. It also provides medical opinion and decision support services; and technology and administrative services to the medical practice PCs providing virtual primary care services. The company serves employers who provide their employees and their employees' families a single place to turn for their health, healthcare, and benefits needs. Accolade, Inc. was incorporated in 2007 and is headquartered in Seattle, Washington.
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