WallStSmart

eBay Inc (EBAY)vsSonic Automotive Inc (SAH)

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Smart Verdict

WallStSmart Research — data-driven comparison

Sonic Automotive Inc generates 29% more annual revenue ($15.47B vs $12.01B). EBAY leads profitability with a 18.6% profit margin vs 1.4%. SAH appears more attractively valued with a PEG of 0.62. EBAY earns a higher WallStSmart Score of 70/100 (B-).

EBAY

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.5Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 4.49

SAH

Buy

61

out of 100

Grade: C+

Growth: 4.0Profit: 5.0Value: 6.7Quality: 5.0
Piotroski: 4/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EBAYSignificantly Overvalued (-28.7%)

Margin of Safety

-28.7%

Fair Value

$95.85

Current Price

$121.96

$26.11 premium

UndervaluedFair: $95.85Overvalued
SAHSignificantly Overvalued (-21.6%)

Margin of Safety

-21.6%

Fair Value

$50.03

Current Price

$61.71

$11.68 premium

UndervaluedFair: $50.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EBAY5 strengths · Avg: 9.4/10
Return on EquityProfitability
47.3%10/10

Every $100 of equity generates 47 in profit

EPS GrowthGrowth
55.0%10/10

Earnings expanding 55.0% YoY

Altman Z-ScoreHealth
4.4910/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.52B9/10

Large-cap with strong market position

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

SAH4 strengths · Avg: 9.0/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.628/10

Growing faster than its price suggests

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

EBAY4 concerns · Avg: 3.8/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

P/E RatioValuation
25.8x4/10

Moderate valuation

Price/BookValuation
11.6x4/10

Trading at 11.6x book value

Debt/EquityHealth
1.603/10

Elevated debt levels

SAH4 concerns · Avg: 2.5/10
Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

EPS GrowthGrowth
-12.3%2/10

Earnings declined 12.3%

Free Cash FlowQuality
$-14.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : EBAY

The strongest argument for EBAY centers on Return on Equity, EPS Growth, Altman Z-Score. Profitability is solid with margins at 18.6% and operating margin at 21.6%. Revenue growth of 14.8% demonstrates continued momentum.

Bull Case : SAH

The strongest argument for SAH centers on P/E Ratio, Altman Z-Score, PEG Ratio. PEG of 0.62 suggests the stock is reasonably priced for its growth.

Bear Case : EBAY

The primary concerns for EBAY are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Bear Case : SAH

The primary concerns for SAH are Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.45 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

EBAY profiles as a mature stock while SAH is a value play — different risk/reward profiles.

EBAY carries more volatility with a beta of 1.32 — expect wider price swings.

EBAY is growing revenue faster at 14.8% — sustainability is the question.

EBAY generates stronger free cash flow (749M), providing more financial flexibility.

Bottom Line

EBAY scores higher overall (70/100 vs 61/100), backed by strong 18.6% margins and 14.8% revenue growth. 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.

eBay Inc

CONSUMER CYCLICAL · INTERNET RETAIL · USA

eBay Inc. is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website.

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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 →

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