CarGurus, Inc. (CARG) vs Valvoline (VVV)

CarGurus, Inc. and Valvoline are both Auto & Truck Dealerships companies. Valvoline is the larger, with a market value of $3.6B against $2.8B — 1.3× the size. CarGurus, Inc. trades at the lower P/E: 16.7× against 36.2×. CarGurus, Inc. grew revenue faster over the last twelve months: 21.2% against 16.1%. CarGurus, Inc. has the higher net margin (18.2% vs 5.17%) and the higher return on invested capital (103.9% vs 9.72%). Across the 22 metrics below, CarGurus, Inc. leads on 18 and Valvoline on 4.

Valuation

Metric CARG VVV Auto & Truck Dealerships median
P/E 16.71 36.15 16.07
P/S 2.91 1.88 0.43
P/B 10.65 8.87 2.36
Price to free cash flow 9.67 27.32 10.48
EV/EBITDA 9.44 11.77 8.50
EV/Sales 2.79 2.65 0.89
Earnings yield 5.98% 2.77% 2.72%
Free cash flow yield 10.34% 3.66% 2.83%

Profitability

Metric CARG VVV Auto & Truck Dealerships median
Gross margin 92.32% 38.28% 19.56%
Operating margin 24.43% 15.33% 3.73%
Net margin 18.19% 5.17% 1.07%
Free cash flow margin 30.11% 6.89% 2.34%
Return on equity 50.28% 27.80% 10.04%
Return on assets 27.46% 3.36% 0.61%
Return on invested capital 103.85% 9.72% 6.85%

Growth

Metric CARG VVV Auto & Truck Dealerships median
Revenue growth (TTM) 21.24% 16.08% 1.46%
EPS growth (last fiscal year) 675.00% 1.86% —
Revenue growth, 5-year CAGR 10.46% 18.66% 10.46%
Net income growth, 5-year CAGR 14.99% (7.82%) 0.00%

Health

Metric CARG VVV Auto & Truck Dealerships median
Debt to equity 0.00 3.84 0.55
Current ratio 1.85 0.70 1.15
Net debt to EBITDA (0.66) 2.01 1.34

Dividend

Metric CARG VVV Auto & Truck Dealerships median
Dividend yield — 1.55% 1.37%
Payout ratio 0.00 0.31 0.00

Size

Metric CARG VVV Auto & Truck Dealerships median
Market cap 2.76b 3.62b 2.10b

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