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 $66.7B against $6.5B — 10.3× the size. Lithia Motors, Inc. trades at the lower P/E: 9.8× against 26.5×. Carvana Co. grew revenue faster over the last twelve months: 54.0% against 2.10%. Carvana Co. has the higher net margin (6.26% vs 1.88%) and the higher return on invested capital (18.3% vs 6.20%). 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 26.54 9.79 15.92
P/S 1.68 0.18 0.27
P/B 8.18 1.03 2.00
Price to free cash flow 45.09 n/m 10.69
EV/EBITDA 17.64 7.97 8.59
EV/Sales 1.78 0.42 0.68
Earnings yield 3.77% 10.22% 3.16%
Free cash flow yield 2.22% (7.23%) 2.80%

Profitability

Metric CVNA LAD Auto & Truck Dealerships median
Gross margin 19.37% 15.17% 19.56%
Operating margin 8.93% 4.08% 3.73%
Net margin 6.26% 1.88% 1.18%
Free cash flow margin 3.72% (1.26%) 2.34%
Return on equity 43.23% 10.63% 10.04%
Return on assets 13.11% 2.83% 0.75%
Return on invested capital 18.32% 6.20% 6.85%

Growth

Metric CVNA LAD Auto & Truck Dealerships median
Revenue growth (TTM) 53.98% 2.10% 3.12%
EPS growth (last fiscal year) 431.45% 9.01% 2.35%
Revenue growth, 5-year CAGR 29.47% 23.45% 10.46%
Net income growth, 5-year CAGR 0.00% 11.75% 0.00%

Health

Metric CVNA LAD Auto & Truck Dealerships median
Debt to equity 1.02 1.48 0.55
Current ratio 3.93 1.00 1.15
Net debt to EBITDA 1.24 4.71 1.34

Dividend

Metric CVNA LAD Auto & Truck Dealerships median
Dividend yield — 0.80% 1.03%
Payout ratio — 0.08 0.24

Size

Metric CVNA LAD Auto & Truck Dealerships median
Market cap 66.71b 6.49b 2.14b

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