WallStSmart

Asbury Automotive Group Inc (ABG)vsCarvana Co (CVNA)

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Smart Verdict

WallStSmart Research — data-driven comparison

Carvana Co generates 56% more annual revenue ($27.45B vs $17.59B). CVNA leads profitability with a 6.2% profit margin vs 2.7%. ABG trades at a lower P/E of 7.9x. CVNA earns a higher WallStSmart Score of 60/100 (C+).

ABG

Buy

56

out of 100

Grade: C

Growth: 3.3Profit: 5.0Value: 7.3Quality: 4.5
Piotroski: 3/9Altman Z: 2.50

CVNA

Buy

60

out of 100

Grade: C+

Growth: 9.3Profit: 7.0Value: 3.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABGSignificantly Overvalued (-55.8%)

Margin of Safety

-55.8%

Fair Value

$149.06

Current Price

$202.65

$53.59 premium

UndervaluedFair: $149.06Overvalued
CVNASignificantly Overvalued (-32.8%)

Margin of Safety

-32.8%

Fair Value

$51.41

Current Price

$73.52

$22.11 premium

UndervaluedFair: $51.41Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABG3 strengths · Avg: 10.0/10
PEG RatioValuation
0.4910/10

Growing faster than its price suggests

P/E RatioValuation
7.9x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

CVNA4 strengths · Avg: 9.8/10
Return on EquityProfitability
38.9%10/10

Every $100 of equity generates 39 in profit

Revenue GrowthGrowth
42.4%10/10

Revenue surging 42.4% year-over-year

EPS GrowthGrowth
85.7%10/10

Earnings expanding 85.7% YoY

Market CapQuality
$75.70B9/10

Large-cap with strong market position

Areas to Watch

ABG4 concerns · Avg: 3.0/10
Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Debt/EquityHealth
1.413/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

CVNA4 concerns · Avg: 3.5/10
P/E RatioValuation
32.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.2x4/10

Trading at 12.2x book value

Profit MarginProfitability
6.2%3/10

6.2% margin — thin

Debt/EquityHealth
1.403/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ABG

The strongest argument for ABG centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.49 suggests the stock is reasonably priced for its growth.

Bull Case : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 42.4% demonstrates continued momentum.

Bear Case : ABG

The primary concerns for ABG are Profit Margin, Operating Margin, Debt/Equity. Thin 2.7% margins leave little buffer for downturns.

Bear Case : CVNA

The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.

Key Dynamics to Monitor

ABG profiles as a value stock while CVNA is a hypergrowth play — different risk/reward profiles.

CVNA carries more volatility with a beta of 3.55 — expect wider price swings.

CVNA is growing revenue faster at 42.4% — sustainability is the question.

CVNA generates stronger free cash flow (187M), providing more financial flexibility.

Bottom Line

CVNA scores higher overall (60/100 vs 56/100) and 42.4% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Asbury Automotive Group Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Asbury Automotive Group, Inc. is an automobile retailer in the United States. The company is headquartered in Duluth, Georgia.

Carvana Co

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.

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