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Because a global semiconductor chip shortage is forcing automakers to reduce new vehicle production, the auto industry has of late witnessed a surge in demand for used cars. The demand for new vehicles is also on the rise. And consumers’ desire to avoid public transport amid the resurgence of COVID-19 cases should keep driving the demand for cars in the coming months. The global Automotive Dealer Management Systems (DMS) market is expected to grow at 6.8% CAGR to $5.58 billion by 2026. So, both SFT and CARG should benefit.
While SFT’s shares have gained 4.2% in price over the past three months, CARG has surged 10%. CARG is a clear winner with 8.6% price gains versus SFT’s negative returns in terms of the past month’s performance. But which of these stocks is a better pick now? Let’s find out.
