ACV Auctions Inc. (ACVA) vs CarGurus, Inc. (CARG)

ACV Auctions Inc. and CarGurus, Inc. are both Auto & Truck Dealerships companies. CarGurus, Inc. is the larger, with a market value of $2.7B against $1.8B — 1.5× the size. ACV Auctions Inc. has negative trailing earnings, so its P/E is not meaningful; CarGurus, Inc. trades at 16.2×. CarGurus, Inc. grew revenue faster over the last twelve months: 21.2% against 13.3%. CarGurus, Inc. has the higher net margin (18.2% vs −7.88%) and the higher return on invested capital (103.9% vs −10.1%). Across the 19 metrics below, CarGurus, Inc. leads on 15 and ACV Auctions Inc. on 4.

Valuation

Metric ACVA CARG Auto & Truck Dealerships median
P/E n/m 16.19 15.92
P/S 2.24 2.82 0.27
P/B 4.61 10.32 2.00
Price to free cash flow n/m 9.37 10.69
EV/EBITDA n/m 9.14 8.59
EV/Sales 2.19 2.70 0.68
Earnings yield (3.43%) 6.18% 3.16%
Free cash flow yield (0.39%) 10.67% 2.80%

Profitability

Metric ACVA CARG Auto & Truck Dealerships median
Gross margin 50.98% 92.32% 19.56%
Operating margin (7.09%) 24.43% 3.73%
Net margin (7.88%) 18.19% 1.18%
Free cash flow margin (0.87%) 30.11% 2.34%
Return on equity (15.06%) 50.28% 10.04%
Return on assets (5.69%) 27.46% 0.75%
Return on invested capital (10.08%) 103.85% 6.85%

Growth

Metric ACVA CARG Auto & Truck Dealerships median
Revenue growth (TTM) 13.30% 21.24% 3.12%
EPS growth (last fiscal year) 18.75% 675.00% 2.35%
Revenue growth, 5-year CAGR 29.53% 10.46% 10.46%
Net income growth, 5-year CAGR 0.00% 14.99% 0.00%

Health

Metric ACVA CARG Auto & Truck Dealerships median
Debt to equity 0.53 0.00 0.55
Current ratio 1.52 1.85 1.15
Net debt to EBITDA 4.19 (0.66) 1.34

Dividend

Metric ACVA CARG Auto & Truck Dealerships median
Dividend yield — — 1.03%
Payout ratio — — 0.24

Size

Metric ACVA CARG Auto & Truck Dealerships median
Market cap 1.78b 2.70b 2.14b

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