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: 10.2× against 11.8×. Driven Brands Holdings Inc. grew revenue faster over the last twelve months: 15.4% against 5.25%. Driven Brands Holdings Inc. has the higher net margin (8.56% vs 1.37%) and the lower return on invested capital (7.22% vs 10.2%). Across the 21 metrics below, Driven Brands Holdings Inc. leads on 13 and Sonic Automotive, Inc. on 8.

Valuation

Metric DRVN SAH Auto & Truck Dealerships median
P/E 11.84 10.16 16.07
P/S 1.05 0.13 0.43
P/B 2.43 2.00 2.36
Price to free cash flow 3.20 71.26 10.48
EV/EBITDA 8.11 6.33 8.50
EV/Sales 1.83 0.27 0.89
Earnings yield 8.45% 9.84% 2.72%
Free cash flow yield 31.24% 1.40% 2.83%

Profitability

Metric DRVN SAH Auto & Truck Dealerships median
Gross margin 44.86% 15.71% 19.56%
Operating margin 13.97% 3.30% 3.73%
Net margin 8.56% 1.37% 1.07%
Free cash flow margin 32.75% 0.19% 2.34%
Return on equity 20.96% 20.62% 10.04%
Return on assets 4.23% 3.44% 0.61%
Return on invested capital 7.22% 10.20% 6.85%

Growth

Metric DRVN SAH Auto & Truck Dealerships median
Revenue growth (TTM) 15.35% 5.25% 1.46%
EPS growth (last fiscal year) 146.70% (44.66%) —
Revenue growth, 5-year CAGR 15.55% 9.18% 10.46%
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 2.07 0.55
Current ratio 1.47 1.01 1.15
Net debt to EBITDA 4.88 3.82 1.34

Dividend

Metric DRVN SAH Auto & Truck Dealerships median
Dividend yield — 2.10% 1.37%
Payout ratio 0.00 0.10 0.00

Size

Metric DRVN SAH Auto & Truck Dealerships median
Market cap 1.99b 1.98b 2.10b

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