Head-To-Head Comparison: Life360 (NASDAQ:LIF) versus CarGurus (NASDAQ:CARG)

Life360 (NASDAQ:LIF) and CarGurus (NASDAQ:CARG) are both mid-cap industrial products companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Life360 and CarGurus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Life360	0	1	6	1	3.00
CarGurus	0	3	7	0	2.70

Life360 presently has a consensus price target of $39.75, suggesting a potential downside of 9.86%. CarGurus has a consensus price target of $29.35, suggesting a potential downside of 7.06%. Given CarGurus’ higher probable upside, analysts plainly believe CarGurus is more favorable than Life360.

Profitability

This table compares Life360 and CarGurus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Life360	-9.26%	-9.81%	-7.59%
CarGurus	-5.57%	11.06%	7.25%

Earnings and Valuation

This table compares Life360 and CarGurus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Life360	$328.68 million	9.85	-$28.17 million	N/A	N/A
CarGurus	$877.03 million	3.75	$31.10 million	$0.28	112.79

CarGurus has higher revenue and earnings than Life360.

Institutional and Insider Ownership

86.9% of CarGurus shares are held by institutional investors. 17.2% of CarGurus shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

CarGurus beats Life360 on 9 of the 12 factors compared between the two stocks.

About Life360

Life360 Inc. is a family connection and safety company. Its business category includes mobile app and Tile tracking devices with a range of services, including location sharing, safe driver reports and crash detection with emergency dispatch. Life360 Inc. is based in SAN FRANCISCO.

About CarGurus

CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers. It also offers dealer and non-dealer advertising products for its websites and social media platforms. The company operates online marketplaces under the CarGurus brand in the United States, Canada, and the United Kingdom; Autolist and CarOffer brands in the United States; and PistonHeads brand in the United Kingdom. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.