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 $2.8B against $2.0B — 1.4× the size. Sonic Automotive, Inc. trades at the lower P/E: 10.2× against 16.7×. 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 16.71 10.16 16.07
P/S 2.91 0.13 0.43
P/B 10.65 2.00 2.36
Price to free cash flow 9.67 71.26 10.48
EV/EBITDA 9.44 6.33 8.50
EV/Sales 2.79 0.27 0.89
Earnings yield 5.98% 9.84% 2.72%
Free cash flow yield 10.34% 1.40% 2.83%

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% 1.07%
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% 0.61%
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% 1.46%
EPS growth (last fiscal year) 675.00% (44.66%) —
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 — 2.10% 1.37%
Payout ratio 0.00 0.10 0.00

Size

Metric CARG SAH Auto & Truck Dealerships median
Market cap 2.76b 1.98b 2.10b

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