Comparing OLO (NYSE:OLO) & ACV Auctions (NASDAQ:ACVA)

OLO (NYSE:OLO – Get Rating) and ACV Auctions (NASDAQ:ACVA – Get Rating) 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.

Risk & Volatility

OLO has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, ACV Auctions has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for OLO and ACV Auctions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OLO	0	3	3	0	2.50
ACV Auctions	0	2	6	0	2.75

OLO presently has a consensus price target of $11.58, suggesting a potential upside of 55.69%. ACV Auctions has a consensus price target of $13.55, suggesting a potential upside of 6.32%. Given OLO’s higher possible upside, equities research analysts plainly believe OLO is more favorable than ACV Auctions.

Earnings and Valuation

This table compares OLO and ACV Auctions’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OLO	$185.40 million	6.47	-$45.97 million	($0.28)	-26.57
ACV Auctions	$421.53 million	4.80	-$102.19 million	($0.66)	-19.30

OLO has higher earnings, but lower revenue than ACV Auctions. OLO is trading at a lower price-to-earnings ratio than ACV Auctions, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

80.9% of OLO shares are owned by institutional investors. Comparatively, 69.8% of ACV Auctions shares are owned by institutional investors. 40.5% of OLO shares are owned by insiders. Comparatively, 11.6% of ACV Auctions 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
OLO	-24.79%	-4.66%	-4.21%
ACV Auctions	-24.24%	-18.17%	-9.69%

Summary

OLO beats ACV Auctions on 8 of the 14 factors compared between the two stocks.

About OLO

(Get Rating)

Olo Inc. provides software-as-a-service platform for multi-location restaurants in the United States. The company's platform enables on-demand commerce operations, which cover digital ordering and delivery through online and mobile ordering modules. Its modules include Order Management, an on-demand digital commerce and channel management solutions that enables consumers to order directly from and pay restaurants via mobile, web, kiosk, voice, and other digital channels; and Delivery Enablement, a fulfillment network, as well as a network aggregator and channel management solution, which enables restaurants to offer, manage, and expand direct delivery, as well as allows restaurants to control and syndicate menu, pricing, location data, and availability, while directly integrating and optimizing orders from third-parties into the restaurants' point-of-sale and systems. The company also provides Customer Engagement solution, a suite of restaurant-centric marketing and sentiment solutions that enables restaurants to collect, analyze, and act on guest data; Front-of-House solution, which enables restaurants to streamline the queue orders from multiple sales channels; and Payment solution, a payment platform that offers fraud prevention that results in enhanced authorization rates for valid transactions. The company was formerly known as Mobo Systems, Inc. and changed its name to Olo Inc. in January 2020. Olo Inc. was incorporated in 2005 and is headquartered in New York, New York.

About ACV Auctions

(Get Rating)

ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. It also provides data services that offer insights into the condition and value of used vehicles, as well as offers customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.