Cars.com Inc. (CARS) vs Groupon, Inc. (GRPN)

Cars.com Inc. and Groupon, Inc. are both Internet Content & Information companies. Groupon, Inc. is the larger, with a market value of $749.5M against $547.6M — 1.4× the size. Groupon, Inc. has negative trailing earnings, so its P/E is not meaningful; Cars.com Inc. trades at 17.6×. Groupon, Inc. grew revenue faster over the last twelve months: 1.98% against 1.08%. Cars.com Inc. has the higher net margin (4.73% vs −25.3%) and the lower return on invested capital (6.05% vs 32.4%). Across the 19 metrics below, Cars.com Inc. leads on 12 and Groupon, Inc. on 7.

Valuation

Metric CARS GRPN Internet Content & Information median
P/E 17.60 n/m 11.54
P/S 0.79 1.28 0.86
P/B 1.29 n/m 1.20
Price to free cash flow 4.17 21.74 9.63
EV/EBITDA 6.34 38.24 8.68
EV/Sales 1.39 1.45 1.18
Earnings yield 5.68% (18.93%) (2.42%)
Free cash flow yield 23.99% 4.60% 2.27%

Profitability

Metric CARS GRPN Internet Content & Information median
Gross margin 67.10% 90.72% 66.84%
Operating margin 11.45% 0.94% (3.41%)
Net margin 4.73% (25.26%) (3.02%)
Free cash flow margin 18.86% 6.02% 1.75%
Return on equity 7.40% 1,211.23% 0.00%
Return on assets 3.30% (20.15%) (0.36%)
Return on invested capital 6.05% 32.40% 0.00%

Growth

Metric CARS GRPN Internet Content & Information median
Revenue growth (TTM) 1.08% 1.98% 2.65%
EPS growth (last fiscal year) (55.56%) (37.75%) 34.45%
Revenue growth, 5-year CAGR 5.73% (18.86%) 9.73%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CARS GRPN Internet Content & Information median
Debt to equity 1.01 (4.26) 0.01
Current ratio 2.00 0.79 1.82
Net debt to EBITDA 2.57 1.11 (0.48)

Dividend

Metric CARS GRPN Internet Content & Information median
Dividend yield — — 1.07%
Payout ratio — — 0.28

Size

Metric CARS GRPN Internet Content & Information median
Market cap 547.64m 749.47m 318.52m

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