Driven Brands Holdings Inc. (DRVN) vs RideNow Group, Inc. (RDNW)

Driven Brands Holdings Inc. and RideNow Group, Inc. are both Auto & Truck Dealerships companies. Driven Brands Holdings Inc. is the larger, with a market value of $2.0B against $209.5M — 9.5× the size. RideNow Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Driven Brands Holdings Inc. trades at 12.0×. Driven Brands Holdings Inc. grew revenue faster over the last twelve months: 7.58% against −1.27%. Driven Brands Holdings Inc. has the higher net margin (8.56% vs −0.76%) and the lower return on invested capital (7.22% vs 17.9%). Across the 18 metrics below, Driven Brands Holdings Inc. leads on 10 and RideNow Group, Inc. on 8.

Valuation

Metric DRVN RDNW Auto & Truck Dealerships median
P/E 11.98 n/m 15.49
P/S 1.02 0.19 0.24
P/B 2.36 n/m 1.45
Price to free cash flow 3.12 n/m 10.17
EV/EBITDA 7.99 3.95 8.57
EV/Sales 1.80 0.33 0.47
Earnings yield 8.35% (4.10%) 2.96%
Free cash flow yield 32.10% (8.72%) 2.14%

Profitability

Metric DRVN RDNW Auto & Truck Dealerships median
Gross margin 44.86% 27.70% 18.39%
Operating margin 13.97% 3.68% 3.69%
Net margin 8.56% (0.76%) 1.20%
Free cash flow margin 32.75% (1.63%) 0.86%
Return on equity 20.96% 122.06% 11.73%
Return on assets 4.23% (1.15%) 0.75%
Return on invested capital 7.22% 17.85% 6.38%

Growth

Metric DRVN RDNW Auto & Truck Dealerships median
Revenue growth (TTM) 7.58% (1.27%) 0.29%
EPS growth (last fiscal year) 146.70% 37.84% (0.89%)
Revenue growth, 5-year CAGR 15.55% 21.05% 9.44%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DRVN RDNW Auto & Truck Dealerships median
Debt to equity 2.02 (23.94) 0.61
Current ratio 1.47 1.14 1.16
Net debt to EBITDA 4.88 3.14 1.24

Dividend

Metric DRVN RDNW Auto & Truck Dealerships median
Dividend yield — — 1.02%
Payout ratio — — 0.24

Size

Metric DRVN RDNW Auto & Truck Dealerships median
Market cap 1.99b 209.49m 2.03b

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