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: 10.0× against 11.5×. 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 11.46 9.95 15.92
P/S 1.02 0.13 0.27
P/B 2.35 1.96 2.00
Price to free cash flow 3.10 69.79 10.69
EV/EBITDA 7.96 6.27 8.59
EV/Sales 1.79 0.27 0.68
Earnings yield 8.72% 10.05% 3.16%
Free cash flow yield 32.26% 1.43% 2.80%

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% 1.18%
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% 0.75%
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% 3.12%
EPS growth (last fiscal year) 146.70% (44.66%) 2.35%
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 — 2.48% 1.03%
Payout ratio — 0.25 0.24

Size

Metric DRVN SAH Auto & Truck Dealerships median
Market cap 1.97b 2.01b 2.14b

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