Critical Contrast: RumbleOn (NASDAQ:RMBL) vs. CI&T (NYSE:CINT)
by Scott Moore · The Cerbat GemRumbleOn (NASDAQ:RMBL – Get Free Report) and CI&T (NYSE:CINT – Get Free Report) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Profitability
This table compares RumbleOn and CI&T’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RumbleOn | -15.15% | -98.94% | -12.22% |
| CI&T | 4.97% | 10.93% | 5.62% |
Analyst Ratings
This is a summary of current ratings for RumbleOn and CI&T, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RumbleOn | 0 | 0 | 3 | 0 | 3.00 |
| CI&T | 0 | 5 | 3 | 1 | 2.56 |
RumbleOn presently has a consensus price target of $8.67, indicating a potential upside of 78.69%. CI&T has a consensus price target of $7.00, indicating a potential downside of 0.85%. Given RumbleOn’s stronger consensus rating and higher probable upside, equities research analysts plainly believe RumbleOn is more favorable than CI&T.
Earnings & Valuation
This table compares RumbleOn and CI&T”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RumbleOn | $1.29 billion | 0.13 | -$215.50 million | ($9.92) | -0.49 |
| CI&T | $2.14 billion | 0.44 | $26.55 million | $0.18 | 39.22 |
CI&T has higher revenue and earnings than RumbleOn. RumbleOn is trading at a lower price-to-earnings ratio than CI&T, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
RumbleOn has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, CI&T has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.
Insider and Institutional Ownership
66.1% of RumbleOn shares are owned by institutional investors. Comparatively, 92.4% of CI&T shares are owned by institutional investors. 54.7% of RumbleOn shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Summary
CI&T beats RumbleOn on 10 of the 14 factors compared between the two stocks.
About RumbleOn
RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.
About CI&T
CI&T Inc., together with its subsidiaries, provides strategy, design, and software engineering services to enable digital transformation for enterprises and companies worldwide. It is also involved in the development of customizable software through the implementation of software solutions, including machine learning, artificial intelligence, analytics, cloud migration, and mobility technologies. The company was founded in 1995 and is headquartered in Campinas, Brazil.