TrueCar (NASDAQ:TRUE) and DecisionPoint Systems (OTCMKTS:DPSI) are both small-cap computer and technology companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
Earnings & Valuation
This table compares TrueCar and DecisionPoint Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|TrueCar||$353.57 million||1.59||-$28.32 million||($0.26)||-20.54|
|DecisionPoint Systems||$31.10 million||0.00||$1.68 million||N/A||N/A|
Risk and Volatility
TrueCar has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, DecisionPoint Systems has a beta of 3.37, meaning that its stock price is 237% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for TrueCar and DecisionPoint Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
TrueCar presently has a consensus price target of $9.41, suggesting a potential upside of 76.12%. Given TrueCar’s higher possible upside, analysts clearly believe TrueCar is more favorable than DecisionPoint Systems.
Institutional & Insider Ownership
95.0% of TrueCar shares are owned by institutional investors. 7.0% of TrueCar shares are owned by company insiders. Comparatively, 14.7% of DecisionPoint Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares TrueCar and DecisionPoint Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
DecisionPoint Systems beats TrueCar on 6 of the 10 factors compared between the two stocks.
TrueCar, Inc., together with its subsidiaries, 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. The company also customizes and operates its platform for its affinity group marketing partners, including financial institutions, membership-based organizations, and employee buying programs for large enterprises. 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. In addition, the company offers forecast, consulting, and other 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. Further, it provides 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; DealerSync, a dealer Website creation and management service and a software platform that assists dealers in managing, marketing, and growing their business; and DealerScience that provides dealers with advanced digital retailing software tools. The company was formerly known as Zag.com Inc. TrueCar, Inc. was founded in 2005 and is headquartered in Santa Monica, California.
About DecisionPoint Systems
DecisionPoint Systems, Inc. operates as an enterprise mobility systems integrator in the United States. It sells and installs mobile computing and wireless systems, such as mobile computers, mobile application software, and related data capture equipment. The company deploys mobile applications for retail stores, warehousing and distribution, manufacturing, transportation and logistics, and field mobility industries. It also provides enterprise mobile software systems, which include APEXWare Field Service solution; APEXWare Merchandising, Sales and Delivery solution; APEXWare Warehouse Management System; DecisionPoint custom development solution; and ContentSentral, which manages and distributes corporate content, as well as resells specialized applications. In addition, the company offers professional services comprising business consulting for understanding the implementation of mobile computing for a business process; technical consulting for determining the technology to be used and implemented; and technical development services consisting of software programming and configuration of the mobile computing, and application solutions, as well as interface software for customer's existing back-office systems. Further, it provides supply chain services, such as Pre-Contract, Pre Go-Live, and Post Go-Live solutions; and deployment and support services consisting of implementation and rollout services. Additionally, the company offers enterprise wireless and mobile computing hardware, such as handheld and vehicle-mounted, and ruggedized mobile computers; wireless LAN infrastructure; GPS receivers; two-way radios; handheld bar code scanners; laptops and tablet computers for rugged environments; consumer Smartphone and tablet computers; and bar code consumables. It serves retail, utility, transportation and logistics, manufacturing, wholesale, distribution, and other commercial customers. The company is headquartered in Irvine, California.
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