Driven Brands Holdings Inc. (DRVN) vs Rush Enterprises, Inc. (RUSHB)

Driven Brands Holdings Inc. and Rush Enterprises, Inc. are both Auto & Truck Dealerships companies. Rush Enterprises, Inc. is the larger, with a market value of $3.9B against $2.0B — 2.0× the size. Driven Brands Holdings Inc. trades at the lower P/E: 11.5× against 25.3×. Driven Brands Holdings Inc. grew revenue faster over the last twelve months: 15.4% against −5.86%. Driven Brands Holdings Inc. has the higher net margin (8.56% vs 3.67%) and the lower return on invested capital (7.22% vs 9.44%). Across the 22 metrics below, Driven Brands Holdings Inc. leads on 15 and Rush Enterprises, Inc. on 7.

Valuation

Metric DRVN RUSHB Auto & Truck Dealerships median
P/E 11.46 25.33 15.92
P/S 1.02 0.93 0.27
P/B 2.35 2.85 2.00
Price to free cash flow 3.10 19.20 10.69
EV/EBITDA 7.96 10.83 8.59
EV/Sales 1.79 0.94 0.68
Earnings yield 8.72% 3.95% 3.16%
Free cash flow yield 32.26% 5.21% 2.80%

Profitability

Metric DRVN RUSHB Auto & Truck Dealerships median
Gross margin 44.86% 19.74% 19.56%
Operating margin 13.97% 5.13% 3.73%
Net margin 8.56% 3.67% 1.18%
Free cash flow margin 32.75% 4.83% 2.34%
Return on equity 20.96% 11.71% 10.04%
Return on assets 4.23% 5.66% 0.75%
Return on invested capital 7.22% 9.44% 6.85%

Growth

Metric DRVN RUSHB Auto & Truck Dealerships median
Revenue growth (TTM) 15.35% (5.86%) 3.12%
EPS growth (last fiscal year) 146.70% (12.10%) 2.35%
Revenue growth, 5-year CAGR 15.55% 9.44% 10.46%
Net income growth, 5-year CAGR 0.00% 18.08% 0.00%

Health

Metric DRVN RUSHB Auto & Truck Dealerships median
Debt to equity 2.02 0.16 0.55
Current ratio 1.47 1.45 1.15
Net debt to EBITDA 4.88 0.23 1.34

Dividend

Metric DRVN RUSHB Auto & Truck Dealerships median
Dividend yield — 0.91% 1.03%
Payout ratio — 0.24 0.24

Size

Metric DRVN RUSHB Auto & Truck Dealerships median
Market cap 1.97b 3.87b 2.14b

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