Carvana Co (CVNA)vsSonic Automotive Inc (SAH)
CVNA
Carvana Co
$308.56
+2.52%
CONSUMER CYCLICAL · Cap: $65.96B
SAH
Sonic Automotive Inc
$65.31
+1.59%
CONSUMER CYCLICAL · Cap: $2.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Carvana Co generates 34% more annual revenue ($20.32B vs $15.15B). SAH leads profitability with a 78.0% profit margin vs 6.9%. SAH trades at a lower P/E of 19.1x. CVNA earns a higher WallStSmart Score of 60/100 (C+).
CVNA
Buy60
out of 100
Grade: C+
SAH
Buy53
out of 100
Grade: C-
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
-161.6%
Fair Value
$23.26
Current Price
$65.31
$42.05 premium
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
Growing faster than its price suggests
Keeps 78 of every $100 in revenue as profit
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
Operating margin of 3.3%
Weak financial health signals
Revenue declined 60.0%
Earnings declined 18.5%
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 : SAH
The strongest argument for SAH centers on PEG Ratio, Profit Margin, Price/Book. Profitability is solid with margins at 78.0% and operating margin at 3.3%. PEG of 0.31 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 : SAH
The primary concerns for SAH are Operating Margin, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
CVNA profiles as a hypergrowth stock while SAH is a declining 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
CVNA scores higher overall (60/100 vs 53/100) and 58.0% 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.
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 →Sonic Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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