WallStSmart

AutoNation Inc (AN)vsCarGurus (CARG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AutoNation Inc generates 2947% more annual revenue ($27.63B vs $906.98M). CARG leads profitability with a 17.2% profit margin vs 2.4%. AN appears more attractively valued with a PEG of 0.68. CARG earns a higher WallStSmart Score of 67/100 (B-).

AN

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 6.0Value: 7.3Quality: 5.3
Piotroski: 3/9Altman Z: 3.01

CARG

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 9.5Value: 10.0Quality: 7.8
Piotroski: 6/9Altman Z: 4.17
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANSignificantly Overvalued (-37.4%)

Margin of Safety

-37.4%

Fair Value

$151.23

Current Price

$193.55

$42.32 premium

UndervaluedFair: $151.23Overvalued
CARGUndervalued (+63.1%)

Margin of Safety

+63.1%

Fair Value

$74.48

Current Price

$35.45

$39.03 discount

UndervaluedFair: $74.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN5 strengths · Avg: 9.0/10
P/E RatioValuation
11.1x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.1%9/10

Every $100 of equity generates 27 in profit

PEG RatioValuation
0.688/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

CARG4 strengths · Avg: 9.0/10
Return on EquityProfitability
43.0%10/10

Every $100 of equity generates 43 in profit

Altman Z-ScoreHealth
4.1710/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

Operating MarginProfitability
28.7%8/10

Strong operational efficiency at 28.7%

Areas to Watch

AN4 concerns · Avg: 3.3/10
EPS GrowthGrowth
1.3%4/10

1.3% earnings growth

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

CARG1 concerns · Avg: 4.0/10
Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 0.68 suggests the stock is reasonably priced for its growth.

Bull Case : CARG

The strongest argument for CARG centers on Return on Equity, Altman Z-Score, P/E Ratio. Profitability is solid with margins at 17.2% and operating margin at 28.7%. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bear Case : AN

The primary concerns for AN are EPS Growth, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.

Bear Case : CARG

The primary concerns for CARG are Price/Book.

Key Dynamics to Monitor

AN profiles as a value stock while CARG is a mature play — different risk/reward profiles.

CARG carries more volatility with a beta of 1.41 — expect wider price swings.

CARG is growing revenue faster at 5.5% — sustainability is the question.

CARG generates stronger free cash flow (82M), providing more financial flexibility.

Bottom Line

CARG scores higher overall (67/100 vs 58/100), backed by strong 17.2% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

AutoNation Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.

CarGurus

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

CarGurus, Inc. operates an online automotive marketplace that connects buyers and sellers of new and used cars in the United States and internationally. The company is headquartered in Cambridge, Massachusetts.

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