Carvana Co. (CVNA) vs Penske Automotive Group, Inc. (PAG)

Carvana Co. and Penske Automotive Group, Inc. are both Auto & Truck Dealerships companies. Carvana Co. is the larger, with a market value of $79.5B against $13.9B — 5.7× the size. Penske Automotive Group, Inc. trades at the lower P/E: 15.5× against 27.2×. Carvana Co. grew revenue faster over the last twelve months: 50.3% against 1.38%. Carvana Co. has the higher net margin (6.21% vs 2.77%) and the higher return on invested capital (19.5% vs 9.11%). Across the 22 metrics below, Carvana Co. leads on 12 and Penske Automotive Group, Inc. on 10.

Valuation

Metric CVNA PAG Auto & Truck Dealerships median
P/E 27.20 15.49 15.49
P/S 1.90 0.43 0.24
P/B 9.22 2.34 1.45
Price to free cash flow 46.77 26.34 10.17
EV/EBITDA 20.17 11.73 8.57
EV/Sales 1.97 0.50 0.47
Earnings yield 3.68% 6.46% 2.96%
Free cash flow yield 2.14% 3.80% 2.14%

Profitability

Metric CVNA PAG Auto & Truck Dealerships median
Gross margin 19.04% 16.04% 18.39%
Operating margin 8.74% 3.70% 3.69%
Net margin 6.21% 2.77% 1.20%
Free cash flow margin 4.06% 1.63% 0.86%
Return on equity 39.66% 15.44% 11.73%
Return on assets 13.62% 5.08% 0.75%
Return on invested capital 19.45% 9.11% 6.38%

Growth

Metric CVNA PAG Auto & Truck Dealerships median
Revenue growth (TTM) 50.28% 1.38% 0.29%
EPS growth (last fiscal year) 431.45% (2.48%) (0.89%)
Revenue growth, 5-year CAGR 29.47% 9.24% 9.44%
Net income growth, 5-year CAGR 0.00% 11.47% 0.00%

Health

Metric CVNA PAG Auto & Truck Dealerships median
Debt to equity 0.92 0.40 0.61
Current ratio 4.05 0.98 1.16
Net debt to EBITDA 1.24 1.45 1.24

Dividend

Metric CVNA PAG Auto & Truck Dealerships median
Dividend yield — 2.66% 1.02%
Payout ratio — 0.41 0.24

Size

Metric CVNA PAG Auto & Truck Dealerships median
Market cap 79.52b 13.93b 2.03b

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