ACV Auctions Inc. (ACVA) vs Valvoline (VVV)

ACV Auctions Inc. and Valvoline are both Auto & Truck Dealerships companies. Valvoline is the larger, with a market value of $4.0B against $1.8B — 2.3× the size. ACV Auctions Inc. has negative trailing earnings, so its P/E is not meaningful; Valvoline trades at 39.3×. Valvoline grew revenue faster over the last twelve months: 16.1% against 13.3%. Valvoline has the higher net margin (5.17% vs −7.88%) and the higher return on invested capital (9.72% vs −10.1%). Across the 19 metrics below, Valvoline leads on 11 and ACV Auctions Inc. on 8.

Valuation

Metric ACVA VVV Auto & Truck Dealerships median
P/E n/m 39.33 15.92
P/S 2.24 2.05 0.27
P/B 4.61 9.65 2.00
Price to free cash flow n/m 29.72 10.69
EV/EBITDA n/m 12.50 8.59
EV/Sales 2.19 2.82 0.68
Earnings yield (3.43%) 2.54% 3.16%
Free cash flow yield (0.39%) 3.37% 2.80%

Profitability

Metric ACVA VVV Auto & Truck Dealerships median
Gross margin 50.98% 38.28% 19.56%
Operating margin (7.09%) 15.33% 3.73%
Net margin (7.88%) 5.17% 1.18%
Free cash flow margin (0.87%) 6.89% 2.34%
Return on equity (15.06%) 27.80% 10.04%
Return on assets (5.69%) 3.36% 0.75%
Return on invested capital (10.08%) 9.72% 6.85%

Growth

Metric ACVA VVV Auto & Truck Dealerships median
Revenue growth (TTM) 13.30% 16.08% 3.12%
EPS growth (last fiscal year) 18.75% 1.86% 2.35%
Revenue growth, 5-year CAGR 29.53% 18.66% 10.46%
Net income growth, 5-year CAGR 0.00% (7.82%) 0.00%

Health

Metric ACVA VVV Auto & Truck Dealerships median
Debt to equity 0.53 3.84 0.55
Current ratio 1.52 0.70 1.15
Net debt to EBITDA 4.19 2.01 1.34

Dividend

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

Size

Metric ACVA VVV Auto & Truck Dealerships median
Market cap 1.78b 4.03b 2.14b

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