WallStSmart

CarGurus (CARG)vsAlphabet Inc Class C (GOOG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Alphabet Inc Class C generates 45995% more annual revenue ($445.87B vs $967.27M). GOOG leads profitability with a 54.8% profit margin vs 18.2%. CARG appears more attractively valued with a PEG of 0.71. GOOG earns a higher WallStSmart Score of 75/100 (B).

CARG

Strong Buy

75

out of 100

Grade: B

Growth: 6.0Profit: 9.5Value: 8.0Quality: 7.0
Piotroski: 5/9Altman Z: 4.31

GOOG

Strong Buy

75

out of 100

Grade: B

Growth: 8.7Profit: 9.5Value: 7.3Quality: 8.5
Piotroski: 4/9Altman Z: 3.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CARGUndervalued (+24.9%)

Margin of Safety

+24.9%

Fair Value

$36.63

Current Price

$34.42

$2.21 discount

UndervaluedFair: $36.63Overvalued
GOOGUndervalued (+29.4%)

Margin of Safety

+29.4%

Fair Value

$474.89

Current Price

$335.45

$139.44 discount

UndervaluedFair: $474.89Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CARG6 strengths · Avg: 9.0/10
Return on EquityProfitability
62.9%10/10

Every $100 of equity generates 63 in profit

EPS GrowthGrowth
141.0%10/10

Earnings expanding 141.0% YoY

Altman Z-ScoreHealth
4.3110/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.718/10

Growing faster than its price suggests

P/E RatioValuation
16.7x8/10

Attractively priced relative to earnings

Operating MarginProfitability
25.3%8/10

Strong operational efficiency at 25.3%

GOOG6 strengths · Avg: 10.0/10
Market CapQuality
$4.10T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
38.1%10/10

Every $100 of equity generates 38 in profit

Profit MarginProfitability
54.8%10/10

Keeps 55 of every $100 in revenue as profit

Operating MarginProfitability
34.0%10/10

Strong operational efficiency at 34.0%

EPS GrowthGrowth
294.0%10/10

Earnings expanding 294.0% YoY

Altman Z-ScoreHealth
3.9210/10

Safe zone — low bankruptcy risk

Areas to Watch

CARG1 concerns · Avg: 4.0/10
Price/BookValuation
13.0x4/10

Trading at 13.0x book value

GOOG1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-5.86B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : CARG

The strongest argument for CARG centers on Return on Equity, EPS Growth, Altman Z-Score. Profitability is solid with margins at 18.2% and operating margin at 25.3%. Revenue growth of 13.1% demonstrates continued momentum.

Bull Case : GOOG

The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 54.8% and operating margin at 34.0%. Revenue growth of 24.2% demonstrates continued momentum.

Bear Case : CARG

The primary concerns for CARG are Price/Book.

Bear Case : GOOG

The primary concerns for GOOG are Free Cash Flow.

Key Dynamics to Monitor

CARG profiles as a mature stock while GOOG is a growth play — different risk/reward profiles.

GOOG carries more volatility with a beta of 1.23 — expect wider price swings.

GOOG is growing revenue faster at 24.2% — sustainability is the question.

CARG generates stronger free cash flow (94M), providing more financial flexibility.

Bottom Line

CARG scores higher overall (75/100 vs 75/100), backed by strong 18.2% margins and 13.1% revenue growth. GOOG offers better value entry with a 29.4% margin of safety. Both earn "Strong Buy" and "Strong 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

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · 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.

Alphabet Inc Class C

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.

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