AutoNation Inc (AN)vsCarGurus (CARG)
AN
AutoNation Inc
$193.55
+2.05%
CONSUMER CYCLICAL · Cap: $6.58B
CARG
CarGurus
$35.45
+1.78%
CONSUMER CYCLICAL · Cap: $3.32B
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
Buy58
out of 100
Grade: C
CARG
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.4%
Fair Value
$151.23
Current Price
$193.55
$42.32 premium
Margin of Safety
+63.1%
Fair Value
$74.48
Current Price
$35.45
$39.03 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 43 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Strong operational efficiency at 28.7%
Areas to Watch
1.3% earnings growth
2.4% margin — thin
Operating margin of 4.0%
Weak financial health signals
Trading at 9.0x book value
Comparative Analysis Report
WallStSmart ResearchBull 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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