AutoWeb (NASDAQ:AUTO) & Integral Ad Science (NASDAQ:IAS) Critical Analysis

AutoWeb (NASDAQ:AUTOGet Rating) and Integral Ad Science (NASDAQ:IASGet Rating) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Valuation and Earnings

This table compares AutoWeb and Integral Ad Science’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AutoWeb $71.58 million 0.09 -$5.66 million ($0.77) -0.63
Integral Ad Science $323.51 million 5.67 -$52.44 million ($0.34) -34.76

AutoWeb has higher earnings, but lower revenue than Integral Ad Science. Integral Ad Science is trading at a lower price-to-earnings ratio than AutoWeb, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for AutoWeb and Integral Ad Science, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AutoWeb 1 1 0 0 1.50
Integral Ad Science 0 1 7 1 3.00

AutoWeb currently has a consensus target price of $2.92, suggesting a potential upside of 506.00%. Integral Ad Science has a consensus target price of $24.67, suggesting a potential upside of 108.69%. Given AutoWeb’s higher probable upside, equities research analysts clearly believe AutoWeb is more favorable than Integral Ad Science.

Profitability

This table compares AutoWeb and Integral Ad Science’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AutoWeb -14.11% -76.04% -28.23%
Integral Ad Science -14.03% -5.60% -3.63%

Institutional and Insider Ownership

20.8% of AutoWeb shares are held by institutional investors. 41.3% of AutoWeb shares are held by insiders. Comparatively, 1.0% of Integral Ad Science shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

Integral Ad Science beats AutoWeb on 9 of the 14 factors compared between the two stocks.

About AutoWeb (Get Rating)

AutoWeb, Inc. operates as a digital marketing company for the automotive industry in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its programs. The company's products include new vehicle lead program, which allows consumers to submit requests for pricing and availability of specific makes and models; and used vehicle lead program, which allows consumers to search for used vehicles according to specific search parameters, such as price, make, model, mileage, year, and location of the vehicle. Its products and services also comprise WebLeads+ that offers various coupon options, which display marketing messages to consumers visiting the dealer's website; and Payment Pro, a dealer website conversion tool that offers consumers real-time online monthly payment information, as well as sells fixed placement advertising across its Website to automotive advertisers. It owns and operates automotive websites that offers consumers with the information and tools to aid them with their automotive purchase decisions; direct marketing platform that enables manufacturers to selectively target in-market consumers during the often-extended vehicle shopping process; and click traffic referral program, a pay-per-click advertising program that offer targeted offers to consumers based on make, model, and geographic location. The company was formerly known as Autobytel Inc. and changed its name to AutoWeb, Inc. in October 2017. AutoWeb, Inc. was founded in 1995 and is headquartered in Tampa, Florida.

About Integral Ad Science (Get Rating)

Integral Ad Science Holding Corp. operates as a digital advertising verification company in the United States, the United Kingdom, Germany, Italy, Spain, Sweden, Singapore, Australia, France, Japan, Canada, India, and Brazil. The company provides IAS Signal, a cloud-based technology platform that offers actionable insights; and deliver independent measurement and verification of digital advertising across devices, channels, and formats, including desktop, mobile, connected TV, social, display, and video. Its digital media quality solutions offer ad fraud detection and prevention, viewability, brand safety and suitability, contextual targeting, inventory yield management, and reporting. The company offers Quality Impressions, a metric designed to verify that digital ads are served to a real person rather than a bot, viewable on-screen, and presented in a brand-safe and suitable environment in the correct geography; Context Control solution that delivers contextual targeting and brand suitability capabilities; pre-bid programmatic and post-bid verification solutions for advertisers; and optimization and verification solutions for publishers. It serves advertisers and agencies, publishers, advertising/audience networks, and supply side platforms. The company was founded in 2009 and is headquartered in New York, New York.

Want More Great Investing Ideas?

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