Contrasting ACV Auctions (NASDAQ:ACVA) and Inchcape (OTCMKTS:IHCPF)

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Inchcape and ACV Auctions, as provided by MarketBeat.

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

ACV Auctions has a consensus price target of $21.57, suggesting a potential upside of 13.24%. Given ACV Auctions’ higher probable upside, analysts clearly believe ACV Auctions is more favorable than Inchcape.

Insider & Institutional Ownership

47.0% of Inchcape shares are owned by institutional investors. Comparatively, 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 hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Inchcape and ACV Auctions’ net margins, return on equity and return on assets.

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

Earnings & Valuation

This table compares Inchcape and ACV Auctions”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inchcape	N/A	N/A	N/A	N/A	N/A
ACV Auctions	$543.70 million	5.78	-$75.26 million	($0.48)	-39.69

Inchcape has higher earnings, but lower revenue than ACV Auctions.

Summary

ACV Auctions beats Inchcape on 5 of the 8 factors compared between the two stocks.

About Inchcape

Inchcape plc operates as an automotive distributor and retailer. It engages in the distribution, sales, and marketing of new and used cars, and parts. The company also provides aftersales service and body shop repairs; and finance and insurance products and services, as well as product planning, logistics, brand and marketing, channel management, and retail services. It operates in the Asia Pacific, the United Kingdom, rest of Europe, the Americas, and Africa. Inchcape plc was founded in 1847 and is headquartered in London, the United Kingdom.

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.