Onfolio (NASDAQ:ONFO) and CarGurus (NASDAQ:CARG) Critical Analysis

Onfolio (NASDAQ:ONFO) and CarGurus (NASDAQ:CARG) are both retail/wholesale 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.

Profitability

This table compares Onfolio and CarGurus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Onfolio	-41.50%	-55.89%	-33.86%
CarGurus	2.34%	27.14%	16.99%

Institutional & Insider Ownership

0.8% of Onfolio shares are owned by institutional investors. Comparatively, 86.9% of CarGurus shares are owned by institutional investors. 39.0% of Onfolio shares are owned by company insiders. Comparatively, 17.2% of CarGurus 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onfolio	0	0	0	0	0.00
CarGurus	0	3	7	1	2.82

CarGurus has a consensus price target of $37.14, suggesting a potential upside of 37.14%. Given CarGurus’ stronger consensus rating and higher probable upside, analysts plainly believe CarGurus is more favorable than Onfolio.

Earnings and Valuation

This table compares Onfolio and CarGurus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onfolio	$6.59 million	0.88	-$8.15 million	($0.60)	-1.88
CarGurus	$894.38 million	3.16	$31.10 million	$0.18	150.44

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

Summary

CarGurus beats Onfolio on 13 of the 14 factors compared between the two stocks.

About Onfolio

Onfolio Holdings, Inc. acquires and develops internet businesses. It provides website management, digital, advertising, and content placement services on its websites; and product sales on various sites. The company was founded in 2019 and is based in Wilmington, Delaware.

About CarGurus

CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers. It also offers dealer and non-dealer advertising products for its websites and social media platforms. The company operates online marketplaces under the CarGurus brand in the United States, Canada, and the United Kingdom; Autolist and CarOffer brands in the United States; and PistonHeads brand in the United Kingdom. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.