Carvana Co (CVNA)vsSonic Automotive Inc (SAH)
CVNA
Carvana Co
$66.67
+4.75%
CONSUMER CYCLICAL · Cap: $70.31B
SAH
Sonic Automotive Inc
$80.58
-2.56%
CONSUMER CYCLICAL · Cap: $2.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Carvana Co generates 48% more annual revenue ($22.52B vs $15.19B). CVNA leads profitability with a 6.4% profit margin vs 0.7%. SAH trades at a lower P/E of 26.7x. CVNA earns a higher WallStSmart Score of 56/100 (C).
CVNA
Buy56
out of 100
Grade: C
SAH
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-65.2%
Fair Value
$40.28
Current Price
$66.67
$26.39 premium
Margin of Safety
-32.0%
Fair Value
$46.08
Current Price
$80.58
$34.50 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
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Trading at 12.8x book value
6.4% margin — thin
Moderate valuation
1.0% revenue growth
0.7% margin — thin
Operating margin of 3.5%
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 : SAH
The strongest argument for SAH centers on PEG Ratio, Altman Z-Score, Price/Book. PEG of 0.41 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 P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 4.51 is elevated, increasing financial risk. Thin 0.7% 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 3.45 — 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
CVNA scores higher overall (56/100 vs 53/100) and 52.0% 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 →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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