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

Cars.com Inc. and Groupon, Inc. are both Internet Content & Information companies. Cars.com Inc. is the larger, with a market value of $725.9M against $633.6M — 1.1× the size. Groupon, Inc. has negative trailing earnings, so its P/E is not meaningful; Cars.com Inc. trades at 17.8×. Groupon, Inc. grew revenue faster over the last twelve months: 1.98% against 0.86%. Cars.com Inc. has the higher net margin (5.92% vs −25.3%) and the lower return on invested capital (7.19% vs 32.4%). Across the 19 metrics below, Cars.com Inc. leads on 11 and Groupon, Inc. on 8.

Valuation

Metric CARS GRPN Internet Content & Information median
P/E 17.83 n/m 12.38
P/S 1.00 1.22 0.93
P/B 1.62 n/m 1.24
Price to free cash flow 5.31 20.67 10.76
EV/EBITDA 6.88 36.56 10.74
EV/Sales 1.55 1.38 1.20
Earnings yield 5.61% (19.91%) (1.71%)
Free cash flow yield 18.85% 4.84% 4.26%

Profitability

Metric CARS GRPN Internet Content & Information median
Gross margin 0.00% 90.72% 63.25%
Operating margin 13.11% 0.94% (1.87%)
Net margin 5.92% (25.26%) (1.37%)
Free cash flow margin 20.91% 6.02% 3.47%
Return on equity 9.28% 1,211.23% (1.19%)
Return on assets 4.10% (20.15%) 0.00%
Return on invested capital 7.19% 32.40% 0.00%

Growth

Metric CARS GRPN Internet Content & Information median
Revenue growth (TTM) 0.86% 1.98% 6.92%
EPS growth (last fiscal year) (55.56%) (37.75%) 34.37%
Revenue growth, 5-year CAGR 5.73% (18.86%) 10.46%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CARS GRPN Internet Content & Information median
Debt to equity 0.99 (4.26) 0.01
Current ratio 2.03 0.79 1.84
Net debt to EBITDA 2.57 1.11 (0.53)

Dividend

Metric CARS GRPN Internet Content & Information median
Dividend yield — — 1.19%
Payout ratio — — 0.27

Size

Metric CARS GRPN Internet Content & Information median
Market cap 725.90m 633.57m 693.23m

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