WallStSmart

Carvana Co (CVNA)vsDriven Brands Holdings Inc (DRVN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Carvana Co generates 1086% more annual revenue ($22.52B vs $1.90B). DRVN leads profitability with a 9.7% profit margin vs 6.4%. DRVN trades at a lower P/E of 15.6x. DRVN earns a higher WallStSmart Score of 69/100 (B-).

CVNA

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 3.7Quality: 8.5
Piotroski: 5/9Altman Z: 2.18

DRVN

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 6.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CVNASignificantly Overvalued (-65.2%)

Margin of Safety

-65.2%

Fair Value

$40.28

Current Price

$66.67

$26.39 premium

UndervaluedFair: $40.28Overvalued
DRVNFair Value (-2.6%)

Margin of Safety

-2.6%

Fair Value

$16.48

Current Price

$13.00

$3.48 premium

UndervaluedFair: $16.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVNA4 strengths · Avg: 9.5/10
Return on EquityProfitability
42.9%10/10

Every $100 of equity generates 43 in profit

Revenue GrowthGrowth
52.0%10/10

Revenue surging 52.0% year-over-year

Market CapQuality
$70.31B9/10

Large-cap with strong market position

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

DRVN5 strengths · Avg: 8.6/10
EPS GrowthGrowth
444.1%10/10

Earnings expanding 444.1% YoY

Return on EquityProfitability
20.2%9/10

Every $100 of equity generates 20 in profit

PEG RatioValuation
0.958/10

Growing faster than its price suggests

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Areas to Watch

CVNA3 concerns · Avg: 3.7/10
P/E RatioValuation
37.3x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.8x4/10

Trading at 12.8x book value

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

DRVN2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Debt/EquityHealth
2.771/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 52.0% demonstrates continued momentum.

Bull Case : DRVN

The strongest argument for DRVN centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.95 suggests the stock is reasonably priced for its growth.

Bear Case : CVNA

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

Bear Case : DRVN

The primary concerns for DRVN are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

CVNA carries more volatility with a beta of 3.45 — expect wider price swings.

CVNA is growing revenue faster at 52.0% — sustainability is the question.

CVNA generates stronger free cash flow (56M), providing more financial flexibility.

Bottom Line

DRVN scores higher overall (69/100 vs 56/100). 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.

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.

Visit Website →

Driven Brands Holdings Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Driven Brands Holdings Inc. provides automotive services to retail and commercial clients in North America and internationally. The company is headquartered in Charlotte, North Carolina.

Want to dig deeper into these stocks?