CarGurus, Inc. (CARG) vs Zillow Group, Inc. (ZG)

CarGurus, Inc. and Zillow Group, Inc. are both Internet Content & Information companies. Zillow Group, Inc. is the larger, with a market value of $6.9B against $3.2B — 2.2× the size. Zillow Group, Inc. has negative trailing earnings, so its P/E is not meaningful; CarGurus, Inc. trades at 19.2×. Zillow Group, Inc. grew revenue faster over the last twelve months: 15.1% against 13.9%. CarGurus, Inc. has the higher net margin (18.2% vs −3.95%) and the higher return on invested capital (103.9% vs −2.33%). Across the 21 metrics below, CarGurus, Inc. leads on 16 and Zillow Group, Inc. on 5.

Valuation

Metric CARG ZG Internet Content & Information median
P/E 19.19 n/m 12.38
P/S 3.34 2.44 0.93
P/B 12.23 1.65 1.24
Price to free cash flow 11.10 25.48 10.76
EV/EBITDA 10.90 23.39 10.74
EV/Sales 3.22 2.50 1.20
Earnings yield 5.21% (1.68%) (1.71%)
Free cash flow yield 9.01% 3.92% 4.26%

Profitability

Metric CARG ZG Internet Content & Information median
Gross margin 92.32% 72.53% 63.25%
Operating margin 24.43% (5.11%) (1.87%)
Net margin 18.19% (3.95%) (1.37%)
Free cash flow margin 30.11% 9.59% 3.47%
Return on equity 50.28% (2.45%) (1.19%)
Return on assets 27.46% (2.05%) 0.00%
Return on invested capital 103.85% (2.33%) 0.00%

Growth

Metric CARG ZG Internet Content & Information median
Revenue growth (TTM) 13.93% 15.10% 6.92%
EPS growth (last fiscal year) 675.00% 118.75% 34.37%
Revenue growth, 5-year CAGR 10.46% 9.73% 10.46%
Net income growth, 5-year CAGR 14.99% 0.00% 0.00%

Health

Metric CARG ZG Internet Content & Information median
Debt to equity 0.00 0.09 0.01
Current ratio 1.85 1.76 1.84
Net debt to EBITDA (0.66) (3.61) (0.53)

Dividend

Metric CARG ZG Internet Content & Information median
Dividend yield — — 1.19%
Payout ratio — — 0.27

Size

Metric CARG ZG Internet Content & Information median
Market cap 3.22b 6.93b 693.23m

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