Carvana Co (CVNA)vsGroup 1 Automotive Inc (GPI)
CVNA
Carvana Co
$308.56
+2.52%
CONSUMER CYCLICAL · Cap: $65.96B
GPI
Group 1 Automotive Inc
$326.86
+2.83%
CONSUMER CYCLICAL · Cap: $4.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Group 1 Automotive Inc generates 11% more annual revenue ($22.57B vs $20.32B). CVNA leads profitability with a 6.9% profit margin vs 1.4%. GPI trades at a lower P/E of 12.6x. CVNA earns a higher WallStSmart Score of 60/100 (C+).
CVNA
Buy60
out of 100
Grade: C+
GPI
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+8.1%
Fair Value
$395.93
Current Price
$308.56
$87.37 discount
Margin of Safety
-97.2%
Fair Value
$170.95
Current Price
$326.86
$155.91 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 68 in profit
Revenue surging 58.0% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Areas to Watch
Premium valuation, high expectations priced in
Trading at 12.8x book value
6.9% margin — thin
0.6% revenue growth
1.4% margin — thin
Operating margin of 3.9%
Earnings declined 50.2%
Comparative Analysis Report
WallStSmart ResearchBull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 58.0% demonstrates continued momentum.
Bull Case : GPI
The strongest argument for GPI centers on PEG Ratio, Price/Book, Altman Z-Score. PEG of 0.33 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 : GPI
The primary concerns for GPI are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 2.10 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
CVNA profiles as a hypergrowth stock while GPI is a value 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 55/100) 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.
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 →Group 1 Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Group 1 Automotive, Inc., operates in the automotive retail industry. The company is headquartered in Houston, Texas.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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