WallStSmart

AutoNation Inc (AN)vsCarGurus (CARG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AutoNation Inc generates 2830% more annual revenue ($27.49B vs $938.30M). CARG leads profitability with a 15.9% profit margin vs 2.5%. AN appears more attractively valued with a PEG of 0.71. AN earns a higher WallStSmart Score of 66/100 (B-).

AN

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 6.0Value: 7.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.83

CARG

Buy

65

out of 100

Grade: C+

Growth: 3.3Profit: 9.0Value: 8.0Quality: 7.0
Piotroski: 5/9Altman Z: 4.31
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AN.

CARGUndervalued (+22.6%)

Margin of Safety

+22.6%

Fair Value

$35.55

Current Price

$27.42

$8.13 discount

UndervaluedFair: $35.55Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN5 strengths · Avg: 8.8/10
P/E RatioValuation
10.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.5%10/10

Every $100 of equity generates 30 in profit

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
31.5%8/10

Earnings expanding 31.5% YoY

CARG5 strengths · Avg: 8.8/10
Return on EquityProfitability
62.9%10/10

Every $100 of equity generates 63 in profit

Altman Z-ScoreHealth
4.3110/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.838/10

Growing faster than its price suggests

P/E RatioValuation
14.3x8/10

Attractively priced relative to earnings

Operating MarginProfitability
24.5%8/10

Strong operational efficiency at 24.5%

Areas to Watch

AN4 concerns · Avg: 2.8/10
Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

CARG2 concerns · Avg: 3.0/10
Price/BookValuation
10.4x4/10

Trading at 10.4x book value

EPS GrowthGrowth
-8.4%2/10

Earnings declined 8.4%

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.71 suggests the stock is reasonably priced for its growth.

Bull Case : CARG

The strongest argument for CARG centers on Return on Equity, Altman Z-Score, PEG Ratio. Profitability is solid with margins at 15.9% and operating margin at 24.5%. Revenue growth of 14.8% demonstrates continued momentum.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Debt-to-equity of 4.71 is elevated, increasing financial risk. Thin 2.5% margins leave little buffer for downturns.

Bear Case : CARG

The primary concerns for CARG are Price/Book, EPS Growth.

Key Dynamics to Monitor

AN profiles as a value stock while CARG is a mature play — different risk/reward profiles.

CARG carries more volatility with a beta of 1.21 — expect wider price swings.

CARG is growing revenue faster at 14.8% — sustainability is the question.

CARG generates stronger free cash flow (69M), providing more financial flexibility.

Bottom Line

AN scores higher overall (66/100 vs 65/100). CARG offers better value entry with a 22.6% margin of safety. Both earn "Strong 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.

AutoNation Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.

CarGurus

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

CarGurus, Inc. operates an online automotive marketplace that connects buyers and sellers of new and used cars in the United States and internationally. The company is headquartered in Cambridge, Massachusetts.

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