CarGurus, Inc. (CARG) vs Sonic Automotive, Inc. (SAH)

CarGurus, Inc. and Sonic Automotive, Inc. are both Auto & Truck Dealerships companies. CarGurus, Inc. is the larger, with a market value of $2.7B against $2.0B — 1.3× the size. Sonic Automotive, Inc. trades at the lower P/E: 10.0× against 16.2×. CarGurus, Inc. grew revenue faster over the last twelve months: 21.2% against 5.25%. CarGurus, Inc. has the higher net margin (18.2% vs 1.37%) and the higher return on invested capital (103.9% vs 10.2%). Across the 22 metrics below, CarGurus, Inc. leads on 16 and Sonic Automotive, Inc. on 6.

Valuation

Metric CARG SAH Auto & Truck Dealerships median
P/E 16.19 9.95 15.92
P/S 2.82 0.13 0.27
P/B 10.32 1.96 2.00
Price to free cash flow 9.37 69.79 10.69
EV/EBITDA 9.14 6.27 8.59
EV/Sales 2.70 0.27 0.68
Earnings yield 6.18% 10.05% 3.16%
Free cash flow yield 10.67% 1.43% 2.80%

Profitability

Metric CARG SAH Auto & Truck Dealerships median
Gross margin 92.32% 15.71% 19.56%
Operating margin 24.43% 3.30% 3.73%
Net margin 18.19% 1.37% 1.18%
Free cash flow margin 30.11% 0.19% 2.34%
Return on equity 50.28% 20.62% 10.04%
Return on assets 27.46% 3.44% 0.75%
Return on invested capital 103.85% 10.20% 6.85%

Growth

Metric CARG SAH Auto & Truck Dealerships median
Revenue growth (TTM) 21.24% 5.25% 3.12%
EPS growth (last fiscal year) 675.00% (44.66%) 2.35%
Revenue growth, 5-year CAGR 10.46% 9.18% 10.46%
Net income growth, 5-year CAGR 14.99% 0.00% 0.00%

Health

Metric CARG SAH Auto & Truck Dealerships median
Debt to equity 0.00 2.07 0.55
Current ratio 1.85 1.01 1.15
Net debt to EBITDA (0.66) 3.82 1.34

Dividend

Metric CARG SAH Auto & Truck Dealerships median
Dividend yield — 2.48% 1.03%
Payout ratio — 0.25 0.24

Size

Metric CARG SAH Auto & Truck Dealerships median
Market cap 2.70b 2.01b 2.14b

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