Financial Survey: Renren (NYSE:RENN) vs. Lithia Motors (NYSE:LAD)

Renren (NYSE:RENN) and Lithia Motors (NYSE:LAD) are both computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Renren and Lithia Motors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Renren 0 0 0 0 N/A
Lithia Motors 1 3 4 0 2.38

Lithia Motors has a consensus price target of $388.63, suggesting a potential upside of 15.88%. Given Lithia Motors’ higher possible upside, analysts plainly believe Lithia Motors is more favorable than Renren.

Risk & Volatility

Renren has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Lithia Motors has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Profitability

This table compares Renren and Lithia Motors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Renren N/A N/A N/A
Lithia Motors 4.51% 27.37% 9.55%

Valuation and Earnings

This table compares Renren and Lithia Motors’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Renren $18.11 million 33.87 -$19.22 million N/A N/A
Lithia Motors $13.12 billion 0.77 $470.30 million $18.19 18.43

Lithia Motors has higher revenue and earnings than Renren.

Institutional & Insider Ownership

3.7% of Renren shares are owned by institutional investors. Comparatively, 93.0% of Lithia Motors shares are owned by institutional investors. 42.4% of Renren shares are owned by insiders. Comparatively, 3.0% of Lithia Motors shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Lithia Motors beats Renren on 8 of the 11 factors compared between the two stocks.

Renren Company Profile

Renren Inc. engages in the Software as a Service (SaaS) business, which includes all-in-one real estate solution provider and a large community for the trucking industry in the United States. The company was founded by Chen Yi Zhou in November 2002 and is headquartered in Beijing, China.

Lithia Motors Company Profile

Lithia Motors, Inc. engages in the operation of automotive franchises and retail of new and used vehicles. It operates through the following segments: Domestic, Import and Luxury. The Domestic segment comprises of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors, and Ford. The Import segment composes of automotive franchises that sell new vehicles manufactured by Honda, Toyota, Subaru, Nissan, and Volkswagen. The Luxury segment includes retail automotive franchises that sell new vehicles manufactured by BMW, Mercedes-Benz, and Lexus. The company was founded by Walt DeBoer and Sidney B. DeBoer in 1946 and is headquartered in Medford, OR.

Receive News & Ratings for Renren Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Renren and related companies with MarketBeat.com's FREE daily email newsletter.