Driven Brands Holdings Inc. (DRVN) vs Sonic Automotive, Inc. (SAH)

Driven Brands Holdings Inc. and Sonic Automotive, Inc. are both Auto & Truck Dealerships companies. Driven Brands Holdings Inc. and Sonic Automotive, Inc. are of similar size ($2.0B and $2.0B). Sonic Automotive, Inc. trades at the lower P/E: 9.9× against 12.0×. Driven Brands Holdings Inc. grew revenue faster over the last twelve months: 7.58% against 2.01%. Driven Brands Holdings Inc. has the higher net margin (8.56% vs 1.33%) and the lower return on invested capital (7.22% vs 10.1%). Across the 20 metrics below, Driven Brands Holdings Inc. leads on 11 and Sonic Automotive, Inc. on 9.

Valuation

Metric DRVN SAH Auto & Truck Dealerships median
P/E 11.98 9.87 15.49
P/S 1.02 0.13 0.24
P/B 2.36 1.86 1.45
Price to free cash flow 3.12 n/m 10.17
EV/EBITDA 7.99 6.21 8.57
EV/Sales 1.80 0.26 0.47
Earnings yield 8.35% 10.13% 2.96%
Free cash flow yield 32.10% (7.77%) 2.14%

Profitability

Metric DRVN SAH Auto & Truck Dealerships median
Gross margin 44.86% 15.70% 18.39%
Operating margin 13.97% 3.23% 3.69%
Net margin 8.56% 1.33% 1.20%
Free cash flow margin 32.75% (0.99%) 0.86%
Return on equity 20.96% 19.35% 11.73%
Return on assets 4.23% 3.29% 0.75%
Return on invested capital 7.22% 10.12% 6.38%

Growth

Metric DRVN SAH Auto & Truck Dealerships median
Revenue growth (TTM) 7.58% 2.01% 0.29%
EPS growth (last fiscal year) 146.70% (44.66%) (0.89%)
Revenue growth, 5-year CAGR 15.55% 9.18% 9.44%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric DRVN SAH Auto & Truck Dealerships median
Debt to equity 2.02 1.92 0.61
Current ratio 1.47 0.95 1.16
Net debt to EBITDA 4.88 3.82 1.24

Dividend

Metric DRVN SAH Auto & Truck Dealerships median
Dividend yield — 2.53% 1.02%
Payout ratio — 0.25 0.24

Size

Metric DRVN SAH Auto & Truck Dealerships median
Market cap 1.99b 1.99b 2.03b

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