AutoNation Inc (AN)vsCarGurus (CARG)
AN
AutoNation Inc
$188.08
-1.31%
CONSUMER CYCLICAL · Cap: $6.41B
CARG
CarGurus
$27.42
+0.18%
CONSUMER CYCLICAL · Cap: $2.45B
Smart Verdict
WallStSmart Research — data-driven comparison
AutoNation Inc generates 2830% more annual revenue ($27.49B vs $938.30M). CARG leads profitability with a 15.9% profit margin vs 2.5%. AN appears more attractively valued with a PEG of 0.71. AN earns a higher WallStSmart Score of 66/100 (B-).
AN
Strong Buy66
out of 100
Grade: B-
CARG
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AN.
Margin of Safety
+22.6%
Fair Value
$35.55
Current Price
$27.42
$8.13 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 31.5% YoY
Every $100 of equity generates 63 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 24.5%
Areas to Watch
2.5% margin — thin
Operating margin of 4.7%
Weak financial health signals
Revenue declined 2.1%
Trading at 10.4x book value
Earnings declined 8.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : AN
The strongest argument for AN centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.71 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, PEG Ratio. Profitability is solid with margins at 15.9% and operating margin at 24.5%. Revenue growth of 14.8% demonstrates continued momentum.
Bear Case : AN
The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Debt-to-equity of 4.71 is elevated, increasing financial risk. Thin 2.5% margins leave little buffer for downturns.
Bear Case : CARG
The primary concerns for CARG are Price/Book, EPS Growth.
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 1.21 — expect wider price swings.
CARG is growing revenue faster at 14.8% — sustainability is the question.
CARG generates stronger free cash flow (69M), providing more financial flexibility.
Bottom Line
AN scores higher overall (66/100 vs 65/100). CARG offers better value entry with a 22.6% margin of safety. 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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