Carvana Co (CVNA)vsKAR Auction Services Inc (KAR)
CVNA
Carvana Co
$67.25
+7.52%
CONSUMER CYCLICAL · Cap: $71.95B
KAR
KAR Auction Services Inc
$30.88
+0.36%
CONSUMER CYCLICAL · Cap: $3.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Carvana Co generates 1088% more annual revenue ($22.52B vs $1.90B). CVNA leads profitability with a 6.4% profit margin vs 0.1%. KAR trades at a lower P/E of 35.5x. KAR earns a higher WallStSmart Score of 65/100 (B-).
CVNA
Buy56
out of 100
Grade: C
KAR
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-66.1%
Fair Value
$40.04
Current Price
$67.25
$27.21 premium
Margin of Safety
-65.7%
Fair Value
$18.64
Current Price
$30.88
$12.24 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 43 in profit
Revenue surging 52.0% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 12.9x book value
6.4% margin — thin
Premium valuation, high expectations priced in
0.1% revenue growth
1.1% earnings growth
ROE of 0.1% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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 : KAR
The strongest argument for KAR centers on Price/Book. PEG of 1.34 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 : KAR
The primary concerns for KAR are P/E Ratio, Revenue Growth, EPS Growth. Thin 0.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
CVNA profiles as a hypergrowth stock while KAR 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.
KAR generates stronger free cash flow (111M), providing more financial flexibility.
Bottom Line
KAR scores higher overall (65/100 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 →KAR Auction Services Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
KAR Auction Services, Inc. provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company is headquartered in Carmel, Indiana.
Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
Want to dig deeper into these stocks?