WallStSmart

AutoNation Inc (AN)vsCarvana Co (CVNA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AutoNation Inc generates 36% more annual revenue ($27.63B vs $20.32B). CVNA leads profitability with a 6.9% profit margin vs 2.4%. AN trades at a lower P/E of 10.7x. CVNA earns a higher WallStSmart Score of 60/100 (C+).

AN

Buy

58

out of 100

Grade: C

Growth: 7.3Profit: 6.0Value: 7.3Quality: 5.3
Piotroski: 3/9Altman Z: 3.01

CVNA

Buy

60

out of 100

Grade: C+

Growth: 9.3Profit: 7.0Value: 7.0Quality: 8.5
Piotroski: 4/9Altman Z: 2.18
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANSignificantly Overvalued (-37.3%)

Margin of Safety

-37.3%

Fair Value

$151.32

Current Price

$181.46

$30.14 premium

UndervaluedFair: $151.32Overvalued
CVNAUndervalued (+7.8%)

Margin of Safety

+7.8%

Fair Value

$394.99

Current Price

$281.28

$113.71 discount

UndervaluedFair: $394.99Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN6 strengths · Avg: 9.2/10
P/E RatioValuation
10.7x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
130.0%10/10

Earnings expanding 130.0% YoY

Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.1%9/10

Every $100 of equity generates 27 in profit

PEG RatioValuation
0.688/10

Growing faster than its price suggests

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

CVNA5 strengths · Avg: 9.6/10
Return on EquityProfitability
67.9%10/10

Every $100 of equity generates 68 in profit

Revenue GrowthGrowth
58.0%10/10

Revenue surging 58.0% year-over-year

EPS GrowthGrowth
947.0%10/10

Earnings expanding 947.0% YoY

Market CapQuality
$61.64B9/10

Large-cap with strong market position

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

Areas to Watch

AN4 concerns · Avg: 2.8/10
Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-3.9%2/10

Revenue declined 3.9%

CVNA3 concerns · Avg: 3.7/10
P/E RatioValuation
33.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
11.6x4/10

Trading at 11.6x book value

Profit MarginProfitability
6.9%3/10

6.9% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, EPS Growth, Altman Z-Score. PEG of 0.68 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 58.0% demonstrates continued momentum.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.4% 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

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

CVNA carries more volatility with a beta of 3.67 — expect wider price swings.

CVNA is growing revenue faster at 58.0% — sustainability is the question.

CVNA generates stronger free cash flow (379M), providing more financial flexibility.

Bottom Line

CVNA scores higher overall (60/100 vs 58/100) and 58.0% 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.

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.

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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