Carvana Co (CVNA)vsKAR Auction Services Inc (KAR)
CVNA
Carvana Co
$308.56
+2.52%
CONSUMER CYCLICAL · Cap: $65.96B
KAR
KAR Auction Services Inc
$30.88
+0.36%
CONSUMER CYCLICAL · Cap: $3.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Carvana Co generates 972% more annual revenue ($20.32B vs $1.90B). KAR leads profitability with a 9.0% profit margin vs 6.9%. KAR trades at a lower P/E of 35.5x. KAR earns a higher WallStSmart Score of 65/100 (B-).
CVNA
Buy60
out of 100
Grade: C+
KAR
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+8.1%
Fair Value
$395.93
Current Price
$308.56
$87.37 discount
Margin of Safety
+24.2%
Fair Value
$40.72
Current Price
$30.88
$9.84 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 68 in profit
Revenue surging 58.0% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Earnings expanding 108.3% YoY
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 12.8x book value
6.9% margin — thin
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 58.0% demonstrates continued momentum.
Bull Case : KAR
The strongest argument for KAR centers on EPS Growth, Price/Book. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bear Case : CVNA
The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.
Bear Case : KAR
The primary concerns for KAR are P/E Ratio.
Key Dynamics to Monitor
CVNA profiles as a hypergrowth stock while KAR is a value play — different risk/reward profiles.
CVNA carries more volatility with a beta of 3.67 — expect wider price swings.
CVNA is growing revenue faster at 58.0% — sustainability is the question.
CVNA generates stronger free cash flow (379M), providing more financial flexibility.
Bottom Line
KAR scores higher overall (65/100 vs 60/100). 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.
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.
Visit Website →KAR Auction Services Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
KAR Auction Services, Inc. provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company is headquartered in Carmel, Indiana.
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