CarGurus, Inc. (CARG) vs Driven Brands Holdings Inc. (DRVN)

CarGurus, Inc. and Driven Brands Holdings Inc. are both Auto & Truck Dealerships companies. CarGurus, Inc. is the larger, with a market value of $2.7B against $2.0B — 1.4× the size. Driven Brands Holdings Inc. trades at the lower P/E: 11.5× against 16.2×. CarGurus, Inc. grew revenue faster over the last twelve months: 21.2% against 15.4%. CarGurus, Inc. has the higher net margin (18.2% vs 8.56%) and the higher return on invested capital (103.9% vs 7.22%). Across the 22 metrics below, CarGurus, Inc. leads on 12 and Driven Brands Holdings Inc. on 10.

Valuation

Metric CARG DRVN Auto & Truck Dealerships median
P/E 16.19 11.46 15.92
P/S 2.82 1.02 0.27
P/B 10.32 2.35 2.00
Price to free cash flow 9.37 3.10 10.69
EV/EBITDA 9.14 7.96 8.59
EV/Sales 2.70 1.79 0.68
Earnings yield 6.18% 8.72% 3.16%
Free cash flow yield 10.67% 32.26% 2.80%

Profitability

Metric CARG DRVN Auto & Truck Dealerships median
Gross margin 92.32% 44.86% 19.56%
Operating margin 24.43% 13.97% 3.73%
Net margin 18.19% 8.56% 1.18%
Free cash flow margin 30.11% 32.75% 2.34%
Return on equity 50.28% 20.96% 10.04%
Return on assets 27.46% 4.23% 0.75%
Return on invested capital 103.85% 7.22% 6.85%

Growth

Metric CARG DRVN Auto & Truck Dealerships median
Revenue growth (TTM) 21.24% 15.35% 3.12%
EPS growth (last fiscal year) 675.00% 146.70% 2.35%
Revenue growth, 5-year CAGR 10.46% 15.55% 10.46%
Net income growth, 5-year CAGR 14.99% 0.00% 0.00%

Health

Metric CARG DRVN Auto & Truck Dealerships median
Debt to equity 0.00 2.02 0.55
Current ratio 1.85 1.47 1.15
Net debt to EBITDA (0.66) 4.88 1.34

Dividend

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

Size

Metric CARG DRVN Auto & Truck Dealerships median
Market cap 2.70b 1.97b 2.14b

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