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 $2.8B against $1.8B — 1.6× the size. ACV Auctions Inc. has negative trailing earnings, so its P/E is not meaningful; CarGurus, Inc. trades at 16.7×. 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 16.71 16.07
P/S 2.23 2.91 0.43
P/B 4.59 10.65 2.36
Price to free cash flow n/m 9.67 10.48
EV/EBITDA n/m 9.44 8.50
EV/Sales 2.19 2.79 0.89
Earnings yield (3.44%) 5.98% 2.72%
Free cash flow yield (0.39%) 10.34% 2.83%

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% 1.07%
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% 0.61%
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% 1.46%
EPS growth (last fiscal year) 18.75% 675.00% —
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 — — 1.37%
Payout ratio 0.00 0.00 0.00

Size

Metric ACVA CARG Auto & Truck Dealerships median
Market cap 1.78b 2.76b 2.10b

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