WallStSmart

CarGurus (CARG)vsRush Enterprises B Inc (RUSHB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Rush Enterprises B Inc generates 675% more annual revenue ($7.27B vs $938.30M). CARG leads profitability with a 15.9% profit margin vs 3.6%. CARG appears more attractively valued with a PEG of 0.83. CARG earns a higher WallStSmart Score of 65/100 (C+).

CARG

Buy

65

out of 100

Grade: C+

Growth: 3.3Profit: 9.0Value: 8.0Quality: 7.0
Piotroski: 5/9Altman Z: 4.31

RUSHB

Hold

46

out of 100

Grade: D+

Growth: 4.0Profit: 5.0Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 3.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CARGUndervalued (+22.6%)

Margin of Safety

+22.6%

Fair Value

$35.55

Current Price

$27.42

$8.13 discount

UndervaluedFair: $35.55Overvalued
RUSHBUndervalued (+20.3%)

Margin of Safety

+20.3%

Fair Value

$82.03

Current Price

$67.00

$15.03 discount

UndervaluedFair: $82.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CARG5 strengths · Avg: 8.8/10
Return on EquityProfitability
62.9%10/10

Every $100 of equity generates 63 in profit

Altman Z-ScoreHealth
4.3110/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.838/10

Growing faster than its price suggests

P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Operating MarginProfitability
24.5%8/10

Strong operational efficiency at 24.5%

RUSHB2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.3410/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

CARG2 concerns · Avg: 3.0/10
Price/BookValuation
10.4x4/10

Trading at 10.4x book value

EPS GrowthGrowth
-8.4%2/10

Earnings declined 8.4%

RUSHB4 concerns · Avg: 2.8/10
Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.742/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : RUSHB

The strongest argument for RUSHB centers on Altman Z-Score, Price/Book.

Bear Case : CARG

The primary concerns for CARG are Price/Book, EPS Growth.

Bear Case : RUSHB

The primary concerns for RUSHB are Profit Margin, Operating Margin, Piotroski F-Score. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

CARG profiles as a mature stock while RUSHB is a value 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

CARG scores higher overall (65/100 vs 46/100), backed by strong 15.9% margins and 14.8% revenue growth. RUSHB offers better value entry with a 20.3% margin of safety. Both earn "Buy" and "Hold" 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.

Rush Enterprises B Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Rush Enterprises, Inc. is an integrated retailer of commercial vehicles and related services in the United States. The company is headquartered in New Braunfels, Texas.

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