Carvana Co. (CVNA) vs Lithia Motors, Inc. (LAD)

Carvana Co. and Lithia Motors, Inc. are both Auto & Truck Dealerships companies. Carvana Co. is the larger, with a market value of $79.5B against $6.8B — 11.6× the size. Lithia Motors, Inc. trades at the lower P/E: 9.1× against 27.2×. Carvana Co. grew revenue faster over the last twelve months: 50.3% against 1.59%. Carvana Co. has the higher net margin (6.21% vs 2.06%) and the higher return on invested capital (19.5% vs 6.05%). Across the 21 metrics below, Carvana Co. leads on 14 and Lithia Motors, Inc. on 7.

Valuation

Metric CVNA LAD Auto & Truck Dealerships median
P/E 27.20 9.10 15.49
P/S 1.90 0.18 0.24
P/B 9.22 1.04 1.45
Price to free cash flow 46.77 n/m 10.17
EV/EBITDA 20.17 8.15 8.57
EV/Sales 1.97 0.43 0.47
Earnings yield 3.68% 10.99% 2.96%
Free cash flow yield 2.14% (5.81%) 2.14%

Profitability

Metric CVNA LAD Auto & Truck Dealerships median
Gross margin 19.04% 15.14% 18.39%
Operating margin 8.74% 4.05% 3.69%
Net margin 6.21% 2.06% 1.20%
Free cash flow margin 4.06% (1.05%) 0.86%
Return on equity 39.66% 11.74% 11.73%
Return on assets 13.62% 3.07% 0.75%
Return on invested capital 19.45% 6.05% 6.38%

Growth

Metric CVNA LAD Auto & Truck Dealerships median
Revenue growth (TTM) 50.28% 1.59% 0.29%
EPS growth (last fiscal year) 431.45% 9.01% (0.89%)
Revenue growth, 5-year CAGR 29.47% 23.45% 9.44%
Net income growth, 5-year CAGR 0.00% 11.75% 0.00%

Health

Metric CVNA LAD Auto & Truck Dealerships median
Debt to equity 0.92 1.46 0.61
Current ratio 4.05 1.00 1.16
Net debt to EBITDA 1.24 4.71 1.24

Dividend

Metric CVNA LAD Auto & Truck Dealerships median
Dividend yield — 0.99% 1.02%
Payout ratio — 0.09 0.24

Size

Metric CVNA LAD Auto & Truck Dealerships median
Market cap 79.52b 6.84b 2.03b

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