Autoweb (AUTO) versus Allison Transmission (ALSN) Critical Analysis

Autoweb (NASDAQ: AUTO) and Allison Transmission (NYSE:ALSN) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

50.3% of Autoweb shares are owned by institutional investors. 12.8% of Autoweb shares are owned by insiders. Comparatively, 7.9% of Allison Transmission shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Autoweb has a beta of 1.08, suggesting that its share price is 8% more volatile than the S&P 500. Comparatively, Allison Transmission has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.


Allison Transmission pays an annual dividend of $0.60 per share and has a dividend yield of 1.6%. Autoweb does not pay a dividend. Allison Transmission pays out 17.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Autoweb and Allison Transmission, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autoweb 0 2 1 0 2.33
Allison Transmission 3 5 5 0 2.15

Autoweb currently has a consensus price target of $5.45, suggesting a potential upside of 62.69%. Allison Transmission has a consensus price target of $43.70, suggesting a potential upside of 13.07%. Given Autoweb’s stronger consensus rating and higher possible upside, analysts plainly believe Autoweb is more favorable than Allison Transmission.

Valuation & Earnings

This table compares Autoweb and Allison Transmission’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Autoweb $142.13 million 0.31 -$64.96 million ($5.15) -0.65
Allison Transmission $2.26 billion 2.39 $504.00 million $3.41 11.33

Allison Transmission has higher revenue and earnings than Autoweb. Autoweb is trading at a lower price-to-earnings ratio than Allison Transmission, indicating that it is currently the more affordable of the two stocks.


This table compares Autoweb and Allison Transmission’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Autoweb -45.71% 3.95% 3.02%
Allison Transmission 22.28% 60.52% 9.65%


Allison Transmission beats Autoweb on 11 of the 16 factors compared between the two stocks.

Autoweb Company Profile

AutoWeb, Inc., formerly Autobytel Inc., is an automotive marketing services company that assists automotive retail dealers and automotive manufacturers market and sell new and used vehicles to consumers through the programs for online lead referrals, dealer marketing products and services, and online advertising programs and mobile products. The Company operates through providing automotive marketing services segment. Its consumer-facing automotive Websites, including Website, provide consumers with information and tools to aid them with the automotive purchase decisions and ability to submit inquiries requesting dealers to contact the consumers regarding purchasing or leasing vehicles. Its AutoWeb pay-per-click advertising marketplace program uses technology to refer consumer traffic to dealers and manufacturer Websites.

Allison Transmission Company Profile

Allison Transmission Holdings, Inc. and its subsidiaries design and manufacture commercial and defense fully-automatic transmissions. The Company manufactures fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium-and heavy-tactical United States defense vehicles. The Company’s transmissions are used in a range of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (energy, mining and construction) and defense vehicles (wheeled and tracked). The Company’s transmissions are sold under the Allison Transmission brand name and remanufactured transmissions are sold under the ReTran brand name. The Company has developed over 100 different models that were used in more than 2,500 different vehicle configurations and were compatible with over 500 combinations of engines, as of December 31, 2016.

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