Reviewing Cars.com (NYSE:CARS) & Adit EdTech Acquisition (NYSE:ADEX)

Adit EdTech Acquisition (NYSE:ADEX) and Cars.com (NYSE:CARS) are both small-cap medical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for Adit EdTech Acquisition and Cars.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adit EdTech Acquisition	0	0	0	0	N/A
Cars.com	0	1	3	0	2.75

Cars.com has a consensus target price of $24.00, indicating a potential upside of 26.32%. Given Cars.com’s higher possible upside, analysts plainly believe Cars.com is more favorable than Adit EdTech Acquisition.

Risk & Volatility

Adit EdTech Acquisition has a beta of -0.32, indicating that its share price is 132% less volatile than the S&P 500. Comparatively, Cars.com has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500.

Valuation & Earnings

This table compares Adit EdTech Acquisition and Cars.com’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adit EdTech Acquisition	$19.62 million	2.44	-$18.66 million	N/A	N/A
Cars.com	$689.18 million	1.82	$118.44 million	$1.57	12.10

Cars.com has higher revenue and earnings than Adit EdTech Acquisition.

Institutional & Insider Ownership

0.8% of Adit EdTech Acquisition shares are held by institutional investors. Comparatively, 89.2% of Cars.com shares are held by institutional investors. 0.3% of Adit EdTech Acquisition shares are held by insiders. Comparatively, 2.1% of Cars.com shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Adit EdTech Acquisition and Cars.com’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adit EdTech Acquisition	N/A	N/A	-41.90%
Cars.com	15.34%	22.28%	9.57%

Summary

Cars.com beats Adit EdTech Acquisition on 10 of the 11 factors compared between the two stocks.

About Adit EdTech Acquisition

Adit EdTech Acquisition Corp. does not have significant operations. It focuses on effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses or entities. Adit EdTech Acquisition Corp. was incorporated in 2020 and is based in New York, New York. Adit EdTech Acquisition Corp. operates as a subsidiary of Adit Edtech Sponsor, LLC.

About Cars.com

Cars.com Inc., through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers. It also sells online subscription advertising products to car dealerships by its direct sales force, as well as through its affiliate sales channel. In addition, the company sells display advertising to national advertisers. Further, it offers online automotive marketplace service that connects buyers and sellers through Cars.com, Auto.com, DealerRater.com, NewCars.com, PickupTrucks.com, DealerInspire.com, and LaunchDigitalMarketing.com Websites. Its platform hosts approximately 4.9 million new and used vehicle listings and serves approximately 20,000 franchise and independent car dealers. Cars.com Inc. was founded in 1998 and is headquartered in Chicago, Illinois.