Head-To-Head Analysis: ACV Auctions (NASDAQ:ACVA) versus China MeiDong Auto (OTCMKTS:CMEIF)

China MeiDong Auto (OTCMKTS:CMEIF) and ACV Auctions (NASDAQ:ACVA) are both consumer cyclical companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.

Profitability

This table compares China MeiDong Auto and ACV Auctions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China MeiDong Auto	N/A	N/A	N/A
ACV Auctions	-14.53%	-13.20%	-6.17%

Insider and Institutional Ownership

88.6% of ACV Auctions shares are owned by institutional investors. 8.5% of ACV Auctions shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares China MeiDong Auto and ACV Auctions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China MeiDong Auto	N/A	N/A	N/A	N/A	N/A
ACV Auctions	$543.70 million	5.73	-$75.26 million	($0.48)	-39.29

China MeiDong Auto has higher earnings, but lower revenue than ACV Auctions.

Analyst Ratings

This is a summary of current ratings and target prices for China MeiDong Auto and ACV Auctions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China MeiDong Auto	0	0	0	0	N/A
ACV Auctions	0	2	5	0	2.71

ACV Auctions has a consensus price target of $21.57, indicating a potential upside of 14.38%. Given ACV Auctions’ higher possible upside, analysts plainly believe ACV Auctions is more favorable than China MeiDong Auto.

Summary

ACV Auctions beats China MeiDong Auto on 5 of the 8 factors compared between the two stocks.

About China MeiDong Auto

China MeiDong Auto Holdings Limited, an investment holding company, operates as an automobile dealer in the People's Republic of China. The company is involved in the sale of new passenger cars and spare parts; and provision of service and survey. It also provides after-sales services, such as auto registration, insurance, auto parts, repair and replacement, sales and maintenance of automotive supplies, etc.; financing referral solutions; and other value added services. In addition, the company engages in the trading of used vehicles and property management. It operates self-operated stores in Beijing, Hebei, Hubei, Hunan, Jiangxi, Fujian, Guangdong, Gansu, and Anhui provinces. The company was founded in 2003 and is headquartered in Dongguan, the People's Republic of China. China MeiDong Auto Holdings Limited is a subsidiary of Apex Sail Limited.

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.