AutoNation, Inc. (AN) vs Carvana Co. (CVNA)

AutoNation, Inc. and Carvana Co. are both Auto & Truck Dealerships companies. Carvana Co. is the larger, with a market value of $79.5B against $6.0B — 13.2× the size. AutoNation, Inc. trades at the lower P/E: 9.0× against 27.2×. Carvana Co. grew revenue faster over the last twelve months: 50.3% against −1.77%. Carvana Co. has the higher net margin (6.21% vs 2.63%) and the higher return on invested capital (19.5% vs 8.69%). Across the 22 metrics below, Carvana Co. leads on 15 and AutoNation, Inc. on 7.

Valuation

Metric AN CVNA Auto & Truck Dealerships median
P/E 9.00 27.20 15.49
P/S 0.23 1.90 0.24
P/B 2.73 9.22 1.45
Price to free cash flow 269.88 46.77 10.17
EV/EBITDA 8.52 20.17 8.57
EV/Sales 0.47 1.97 0.47
Earnings yield 11.11% 3.68% 2.96%
Free cash flow yield 0.37% 2.14% 2.14%

Profitability

Metric AN CVNA Auto & Truck Dealerships median
Gross margin 17.74% 19.04% 18.39%
Operating margin 4.60% 8.74% 3.69%
Net margin 2.63% 6.21% 1.20%
Free cash flow margin 0.08% 4.06% 0.86%
Return on equity 30.22% 39.66% 11.73%
Return on assets 4.84% 13.62% 0.75%
Return on invested capital 8.69% 19.45% 6.38%

Growth

Metric AN CVNA Auto & Truck Dealerships median
Revenue growth (TTM) (1.77%) 50.28% 0.29%
EPS growth (last fiscal year) 0.71% 431.45% (0.89%)
Revenue growth, 5-year CAGR 6.27% 29.47% 9.44%
Net income growth, 5-year CAGR 11.21% 0.00% 0.00%

Health

Metric AN CVNA Auto & Truck Dealerships median
Debt to equity 3.03 0.92 0.61
Current ratio 0.77 4.05 1.16
Net debt to EBITDA 3.70 1.24 1.24

Dividend

Metric AN CVNA Auto & Truck Dealerships median
Dividend yield — — 1.02%
Payout ratio — — 0.24

Size

Metric AN CVNA Auto & Truck Dealerships median
Market cap 6.02b 79.52b 2.03b

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