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 $855.5M against $568.0M — 1.5× the size. Groupon, Inc. has negative trailing earnings, so its P/E is not meaningful; Cars.com Inc. trades at 18.8×. 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 18.79 n/m 10.24
P/S 0.84 1.67 0.87
P/B 1.37 n/m 1.32
Price to free cash flow 4.45 28.27 8.85
EV/EBITDA 6.58 48.43 8.86
EV/Sales 1.44 1.83 1.15
Earnings yield 5.32% (14.55%) (1.58%)
Free cash flow yield 22.47% 3.54% 2.32%

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%) —
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 — — 3.19%
Payout ratio 0.00 0.00 0.00

Size

Metric CARS GRPN Internet Content & Information median
Market cap 567.98m 855.50m 283.68m

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