CarGurus (CARG)vsCarvana Co (CVNA)
CARG
CarGurus
$27.42
+0.18%
CONSUMER CYCLICAL · Cap: $2.45B
CVNA
Carvana Co
$67.25
+7.49%
CONSUMER CYCLICAL · Cap: $71.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Carvana Co generates 2300% more annual revenue ($22.52B vs $938.30M). CARG leads profitability with a 15.9% profit margin vs 6.4%. CARG trades at a lower P/E of 14.3x. CARG earns a higher WallStSmart Score of 65/100 (C+).
CARG
Buy65
out of 100
Grade: C+
CVNA
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+22.6%
Fair Value
$35.55
Current Price
$27.42
$8.13 discount
Margin of Safety
-66.1%
Fair Value
$40.04
Current Price
$67.25
$27.21 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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%
Every $100 of equity generates 43 in profit
Revenue surging 52.0% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Trading at 10.4x book value
Earnings declined 8.4%
Premium valuation, high expectations priced in
Trading at 12.9x book value
6.4% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 52.0% demonstrates continued momentum.
Bear Case : CARG
The primary concerns for CARG are Price/Book, EPS Growth.
Bear Case : CVNA
The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.
Key Dynamics to Monitor
CARG profiles as a mature stock while CVNA is a hypergrowth play — different risk/reward profiles.
CVNA carries more volatility with a beta of 3.55 — expect wider price swings.
CVNA is growing revenue faster at 52.0% — sustainability is the question.
CARG generates stronger free cash flow (69M), providing more financial flexibility.
Bottom Line
CARG scores higher overall (65/100 vs 56/100), backed by strong 15.9% margins and 14.8% revenue growth. 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.
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.
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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