ACV Auctions Inc. (ACVA) vs Driven Brands Holdings Inc. (DRVN)

ACV Auctions Inc. and Driven Brands Holdings Inc. are both Auto & Truck Dealerships companies. Driven Brands Holdings Inc. is the larger, with a market value of $2.0B against $1.8B — 1.1× the size. ACV Auctions Inc. has negative trailing earnings, so its P/E is not meaningful; Driven Brands Holdings Inc. trades at 11.8×. Driven Brands Holdings Inc. grew revenue faster over the last twelve months: 15.4% against 13.3%. Driven Brands Holdings Inc. has the higher net margin (8.56% vs −7.88%) and the higher return on invested capital (7.22% vs −10.1%). Across the 18 metrics below, Driven Brands Holdings Inc. leads on 13 and ACV Auctions Inc. on 5.

Valuation

Metric ACVA DRVN Auto & Truck Dealerships median
P/E n/m 11.84 16.07
P/S 2.23 1.05 0.43
P/B 4.59 2.43 2.36
Price to free cash flow n/m 3.20 10.48
EV/EBITDA n/m 8.11 8.50
EV/Sales 2.19 1.83 0.89
Earnings yield (3.44%) 8.45% 2.72%
Free cash flow yield (0.39%) 31.24% 2.83%

Profitability

Metric ACVA DRVN Auto & Truck Dealerships median
Gross margin 50.98% 44.86% 19.56%
Operating margin (7.09%) 13.97% 3.73%
Net margin (7.88%) 8.56% 1.07%
Free cash flow margin (0.87%) 32.75% 2.34%
Return on equity (15.06%) 20.96% 10.04%
Return on assets (5.69%) 4.23% 0.61%
Return on invested capital (10.08%) 7.22% 6.85%

Growth

Metric ACVA DRVN Auto & Truck Dealerships median
Revenue growth (TTM) 13.30% 15.35% 1.46%
EPS growth (last fiscal year) 18.75% 146.70% —
Revenue growth, 5-year CAGR 29.53% 15.55% 10.46%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ACVA DRVN Auto & Truck Dealerships median
Debt to equity 0.53 2.02 0.55
Current ratio 1.52 1.47 1.15
Net debt to EBITDA 4.19 4.88 1.34

Dividend

Metric ACVA DRVN Auto & Truck Dealerships median
Dividend yield — — 1.37%
Payout ratio 0.00 0.00 0.00

Size

Metric ACVA DRVN Auto & Truck Dealerships median
Market cap 1.78b 1.99b 2.10b

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