Analyzing Rush Enterprises (NASDAQ:RUSHA) and Renren (NYSE:RENN)

Rush Enterprises (NASDAQ:RUSHA) and Renren (NYSE:RENN) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitability and valuation.

Analyst Ratings

This is a breakdown of current ratings and price targets for Rush Enterprises and Renren, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rush Enterprises 0 2 0 0 2.00
Renren 0 0 0 0 N/A

Rush Enterprises presently has a consensus target price of $39.83, suggesting a potential downside of 7.47%. Given Rush Enterprises’ higher possible upside, analysts plainly believe Rush Enterprises is more favorable than Renren.

Risk & Volatility

Rush Enterprises has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Renren has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Valuation & Earnings

This table compares Rush Enterprises and Renren’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rush Enterprises $4.74 billion 0.51 $114.89 million $2.04 21.10
Renren $18.11 million 15.26 -$19.22 million N/A N/A

Rush Enterprises has higher revenue and earnings than Renren.

Profitability

This table compares Rush Enterprises and Renren’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rush Enterprises 2.93% 10.99% 4.54%
Renren N/A N/A N/A

Insider and Institutional Ownership

72.2% of Rush Enterprises shares are held by institutional investors. 12.4% of Rush Enterprises shares are held by insiders. Comparatively, 42.4% of Renren shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Rush Enterprises beats Renren on 7 of the 10 factors compared between the two stocks.

About Rush Enterprises

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, or Blue Bird; provides new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance to its commercial vehicle customers. The company also offers equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services; body, chassis upfit, and component installation services, as well as sells tires for use on commercial vehicles, new and used trailers, and vehicle telematics products; and manufactures compressed natural gas fuel systems and related component parts for commercial vehicles. It serves regional and national truck fleets, corporations, local and state governments, and owner operators. The company operates a network of centers located in the states of Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, Nebraska, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, and Virginia. Rush Enterprises, Inc. was founded in 1965 and is headquartered in New Braunfels, Texas.

About Renren

Renren Inc. sells used automobiles and related products in the People's Republic of China. The company also arranges financing options for customers through its financial services partners; provides credit financing to used automobile dealers; and sells new cars, as well as provides value-added services, such as warranties, insurance, and after-sale products and services. It offers vehicles of Audi, BMW, Mercedes-Benz, Land Rover, and Porsche brands at its in-store showrooms; and through Kaixin Auto app, as well as through other online vertical channels, such as Autohome and 58.com. In addition, the company develops Chime, a Software as a Solution platform that offers lead generation and customer relationship management solutions for real estate professionals; and provides customizable lead capture landing pages that offer multiple home value estimates in the United States. Further, it provides online and mobile services for the trucking industry in the United States. The company was formerly known as Oak Pacific Interactive and changed its name to Renren Inc. in December 2010. Renren Inc. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

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