CarGurus, Inc. (CARG) vs Group 1 Automotive, Inc. (GPI)

CarGurus, Inc. and Group 1 Automotive, Inc. are both Auto & Truck Dealerships companies. CarGurus, Inc. and Group 1 Automotive, Inc. are of similar size ($3.0B and $2.8B). Group 1 Automotive, Inc. trades at the lower P/E: 10.5× against 16.7×. CarGurus, Inc. grew revenue faster over the last twelve months: 21.2% against 0.81%. CarGurus, Inc. has the higher net margin (18.2% vs 1.30%) and the higher return on invested capital (103.9% vs 7.04%). Across the 22 metrics below, CarGurus, Inc. leads on 13 and Group 1 Automotive, Inc. on 9.

Valuation

Metric CARG GPI Auto & Truck Dealerships median
P/E 16.71 10.50 16.07
P/S 2.91 0.13 0.43
P/B 10.65 1.01 2.36
Price to free cash flow 9.67 4.91 10.48
EV/EBITDA 9.44 7.50 8.50
EV/Sales 2.79 0.28 0.89
Earnings yield 5.98% 9.52% 2.72%
Free cash flow yield 10.34% 20.36% 2.83%

Profitability

Metric CARG GPI Auto & Truck Dealerships median
Gross margin 92.32% 15.95% 19.56%
Operating margin 24.43% 3.13% 3.73%
Net margin 18.19% 1.30% 1.07%
Free cash flow margin 30.11% 2.73% 2.34%
Return on equity 50.28% 9.44% 10.04%
Return on assets 27.46% 2.80% 0.61%
Return on invested capital 103.85% 7.04% 6.85%

Growth

Metric CARG GPI Auto & Truck Dealerships median
Revenue growth (TTM) 21.24% 0.81% 1.46%
EPS growth (last fiscal year) 675.00% (31.43%) —
Revenue growth, 5-year CAGR 10.46% 16.32% 10.46%
Net income growth, 5-year CAGR 14.99% 3.08% 0.00%

Health

Metric CARG GPI Auto & Truck Dealerships median
Debt to equity 0.00 1.14 0.55
Current ratio 1.85 1.02 1.15
Net debt to EBITDA (0.66) 4.26 1.34

Dividend

Metric CARG GPI Auto & Truck Dealerships median
Dividend yield — 0.57% 1.37%
Payout ratio 0.00 0.04 0.00

Size

Metric CARG GPI Auto & Truck Dealerships median
Market cap 2.76b 2.95b 2.10b

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