TrueCar (NASDAQ:TRUE) vs. Trump Media & Technology Group (NASDAQ:DJT) Critical Review

TrueCar (NASDAQ:TRUEGet Free Report) and Trump Media & Technology Group (NASDAQ:DJTGet Free Report) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Earnings & Valuation

This table compares TrueCar and Trump Media & Technology Group”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TrueCar $170.68 million 2.13 -$49.77 million ($0.29) -14.45
Trump Media & Technology Group $4.13 million 1,900.86 -$21.89 million N/A N/A

Trump Media & Technology Group has lower revenue, but higher earnings than TrueCar.

Insider and Institutional Ownership

79.4% of TrueCar shares are held by institutional investors. Comparatively, 4.3% of Trump Media & Technology Group shares are held by institutional investors. 3.3% of TrueCar shares are held by insiders. Comparatively, 14.8% of Trump Media & Technology Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares TrueCar and Trump Media & Technology Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TrueCar -15.88% -14.33% -11.26%
Trump Media & Technology Group N/A -103.05% -75.54%

Analyst Ratings

This is a summary of current ratings and recommmendations for TrueCar and Trump Media & Technology Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TrueCar 0 1 3 0 2.75
Trump Media & Technology Group 0 0 0 0 0.00

TrueCar presently has a consensus price target of $4.88, indicating a potential upside of 16.35%. Given TrueCar’s stronger consensus rating and higher possible upside, analysts clearly believe TrueCar is more favorable than Trump Media & Technology Group.

Risk and Volatility

TrueCar has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Trump Media & Technology Group has a beta of 5.25, suggesting that its share price is 425% more volatile than the S&P 500.

Summary

TrueCar beats Trump Media & Technology Group on 7 of the 12 factors compared between the two stocks.

About TrueCar

(Get Free Report)

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 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. The company was incorporated in 2005 and is headquartered in Santa Monica, California.

About Trump Media & Technology Group

(Get Free Report)

Trump Media & Technology Group Corp. develops a social media platform known as Truth Social that offers social networking services in the United States. The company was founded in 2021 and is based in Sarasota, Florida.

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