WallStSmart

Carvana Co (CVNA)vsGroup 1 Automotive Inc (GPI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Carvana Co generates 0% more annual revenue ($22.52B vs $22.47B). CVNA leads profitability with a 6.4% profit margin vs 1.5%. GPI trades at a lower P/E of 12.4x. GPI earns a higher WallStSmart Score of 59/100 (C).

CVNA

Buy

56

out of 100

Grade: C

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

GPI

Buy

59

out of 100

Grade: C

Growth: 5.3Profit: 5.0Value: 7.7Quality: 5.5
Piotroski: 4/9Altman Z: 3.33
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CVNASignificantly Overvalued (-66.1%)

Margin of Safety

-66.1%

Fair Value

$40.04

Current Price

$67.25

$27.21 premium

UndervaluedFair: $40.04Overvalued

Intrinsic value data unavailable for GPI.

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
$71.95B9/10

Large-cap with strong market position

Debt/EquityHealth
0.179/10

Conservative balance sheet, low leverage

GPI4 strengths · Avg: 9.5/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

Price/BookValuation
1.3x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.3310/10

Safe zone — low bankruptcy risk

P/E RatioValuation
12.4x8/10

Attractively priced relative to earnings

Areas to Watch

CVNA3 concerns · Avg: 3.7/10
P/E RatioValuation
37.9x4/10

Premium valuation, high expectations priced in

Price/BookValuation
12.9x4/10

Trading at 12.9x book value

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

GPI4 concerns · Avg: 2.8/10
Profit MarginProfitability
1.5%3/10

1.5% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Debt/EquityHealth
1.983/10

Elevated debt levels

Revenue GrowthGrowth
-1.8%2/10

Revenue declined 1.8%

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 : GPI

The strongest argument for GPI centers on PEG Ratio, Price/Book, Altman Z-Score. PEG of 0.39 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 Profit Margin, Operating Margin, Debt/Equity. Debt-to-equity of 1.98 is elevated, increasing financial risk. Thin 1.5% 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 3.55 — 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

GPI scores higher overall (59/100 vs 56/100). 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.

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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.

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