Carvana Co (CVNA)vsSonic Automotive Inc (SAH)
CVNA
Carvana Co
$70.85
+3.67%
CONSUMER CYCLICAL · Cap: $101.23B
SAH
Sonic Automotive Inc
$82.44
-2.89%
CONSUMER CYCLICAL · Cap: $2.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Carvana Co generates 62% more annual revenue ($25.06B vs $15.47B). CVNA leads profitability with a 6.3% profit margin vs 1.4%. SAH trades at a lower P/E of 14.6x. SAH earns a higher WallStSmart Score of 59/100 (C).
CVNA
Buy58
out of 100
Grade: C
SAH
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-53.2%
Fair Value
$45.35
Current Price
$70.85
$25.50 premium
Margin of Safety
-26.7%
Fair Value
$48.04
Current Price
$82.44
$34.40 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 43 in profit
Revenue surging 52.4% year-over-year
Earnings expanding 61.5% YoY
Large-cap with strong market position
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 12.7x book value
6.3% margin — thin
Elevated debt levels
1.4% margin — thin
Operating margin of 3.4%
Earnings declined 12.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 52.4% demonstrates continued momentum.
Bull Case : SAH
The strongest argument for SAH centers on PEG Ratio, Altman Z-Score, P/E Ratio. PEG of 0.45 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 Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.51 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
CVNA profiles as a hypergrowth stock while SAH is a value play — different risk/reward profiles.
CVNA carries more volatility with a beta of 3.49 — expect wider price swings.
CVNA is growing revenue faster at 52.4% — sustainability is the question.
CVNA generates stronger free cash flow (56M), providing more financial flexibility.
Bottom Line
SAH scores higher overall (59/100 vs 58/100). 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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