Carvana Co (CVNA)vsSonic Automotive Inc (SAH)
CVNA
Carvana Co
$73.52
+2.07%
CONSUMER CYCLICAL · Cap: $75.70B
SAH
Sonic Automotive Inc
$61.71
-1.74%
CONSUMER CYCLICAL · Cap: $2.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Carvana Co generates 77% more annual revenue ($27.45B vs $15.47B). CVNA leads profitability with a 6.2% profit margin vs 1.4%. SAH trades at a lower P/E of 10.1x. SAH earns a higher WallStSmart Score of 61/100 (C+).
CVNA
Buy60
out of 100
Grade: C+
SAH
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.8%
Fair Value
$51.41
Current Price
$73.52
$22.11 premium
Margin of Safety
-21.6%
Fair Value
$50.03
Current Price
$61.71
$11.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 39 in profit
Revenue surging 42.4% year-over-year
Earnings expanding 85.7% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 12.2x book value
6.2% margin — thin
Elevated debt levels
1.4% margin — thin
Operating margin of 3.4%
Earnings declined 12.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 42.4% demonstrates continued momentum.
Bull Case : SAH
The strongest argument for SAH centers on P/E Ratio, Altman Z-Score, PEG Ratio. PEG of 0.62 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 : SAH
The primary concerns for SAH are Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.45 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 SAH 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 42.4% — sustainability is the question.
CVNA generates stronger free cash flow (187M), providing more financial flexibility.
Bottom Line
SAH scores higher overall (61/100 vs 60/100). 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.
Visit Website →Sonic Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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