WallStSmart

AutoNation Inc (AN)vsCarvana Co (CVNA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AutoNation Inc generates 10% more annual revenue ($27.45B vs $25.06B). CVNA leads profitability with a 6.3% profit margin vs 2.8%. AN trades at a lower P/E of 9.7x. AN earns a higher WallStSmart Score of 63/100 (C+).

AN

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 7.7Quality: 4.5
Piotroski: 4/9Altman Z: 2.85

CVNA

Buy

60

out of 100

Grade: C+

Growth: 9.3Profit: 7.0Value: 3.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AN.

CVNASignificantly Overvalued (-41.5%)

Margin of Safety

-41.5%

Fair Value

$46.52

Current Price

$65.11

$18.59 premium

UndervaluedFair: $46.52Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN5 strengths · Avg: 9.2/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.5%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
138.5%10/10

Earnings expanding 138.5% YoY

PEG RatioValuation
0.588/10

Growing faster than its price suggests

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

CVNA4 strengths · Avg: 9.8/10
Return on EquityProfitability
38.9%10/10

Every $100 of equity generates 39 in profit

Revenue GrowthGrowth
52.4%10/10

Revenue surging 52.4% year-over-year

EPS GrowthGrowth
61.5%10/10

Earnings expanding 61.5% YoY

Market CapQuality
$77.90B9/10

Large-cap with strong market position

Areas to Watch

AN4 concerns · Avg: 2.5/10
Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

Free Cash FlowQuality
$-140.70M2/10

Negative free cash flow — burning cash

CVNA4 concerns · Avg: 3.5/10
P/E RatioValuation
37.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.6x4/10

Trading at 11.6x book value

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Debt/EquityHealth
1.403/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Return on Equity, EPS Growth. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bull Case : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 52.4% demonstrates continued momentum.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Revenue Growth. Debt-to-equity of 5.02 is elevated, increasing financial risk. Thin 2.8% margins leave little buffer for downturns.

Bear Case : CVNA

The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.

Key Dynamics to Monitor

AN profiles as a value stock while CVNA is a hypergrowth play — different risk/reward profiles.

CVNA carries more volatility with a beta of 3.50 — expect wider price swings.

CVNA is growing revenue faster at 52.4% — sustainability is the question.

CVNA generates stronger free cash flow (187M), providing more financial flexibility.

Bottom Line

AN scores higher overall (63/100 vs 60/100). Both earn "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.

Carvana Co

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.

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