CARG vs CVNA Stock Comparison: AI Score, Valuation, Performance and Upside
CarGurus operates an asset-light marketplace model monetized through dealer subscriptions, while Carvana is a vertically integrated used-vehicle retailer that owns inventory, logistics, and financing end to end. The comparison typically weighs marketplace-style margin stability against a retailer's higher operating leverage and turnaround trajectory.
Use this CARG vs CVNA comparison to separate an asset-light auto marketplace from a vertically integrated used-vehicle retailer: CarGurus offers steadier, subscription-based marketplace economics, while Carvana offers higher operating leverage tied to its post-restructuring turnaround and unit growth.
CARG holds the edge across 4 of 5 key metrics in this comparison. CARG leads on both 1-year return (+2.17%) and forward P/E quality (11.74x vs 32.24x for CVNA), a relatively favorable combination of momentum and valuation. On fundamentals, CVNA is growing revenue faster (52.40%), while CARG maintains the higher operating margin (25.27%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for CARG (+17.07%) than for CVNA (+13.79%).
- Prefer an asset-light marketplace model with high incremental margins
- Want lower balance-sheet and inventory risk than a vehicle retailer
- Value diversified dealer subscription and advertising revenue streams
- Seek steadier exposure to online car shopping trends
- Believe Carvana's post-restructuring turnaround and unit growth can continue
- Are comfortable with a capital-intensive, vertically integrated retail model
- Want direct exposure to used vehicle volume and gross-profit-per-unit trends
- Can tolerate a company still carrying meaningful debt from its restructuring history
| Metric | CARG | CVNA |
|---|---|---|
| AI score | 31.6 | 68.7 |
| AI rank | #2117 | #42 |
| Latest close | $35.35 | $72.89 |
| 1M return | -2.46% | +16.89% |
| 6M return | +15.15% | +9.06% |
| 1Y return | +2.17% | -2.01% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | CARG | CVNA |
|---|---|---|
| 1Y ago | $10.16K (+1.6%) started 2025-09-02 | $9.95K (-0.5%) started 2025-09-02 |
| 5Y ago | $11.64K (+16.4%) started 2021-08-31 | $11.11K (+11.1%) started 2021-08-31 |
| 10Y ago | $12.82K (+28.2%) started 2017-10-12 | $328.33K (+3183.3%) started 2017-04-28 |
Hypothetical — past performance does not guarantee future results.
| Metric | CARG | CVNA |
|---|---|---|
| Market cap | $3.15B | $80.83B |
| Trailing P/E | 18.22 | 38.58 |
| Forward P/E | 11.74 | 32.24 |
| Price/Sales | 3.26 | 3.23 |
| EV/Revenue | 3.43 | 2.27 |
| Analyst target | $41.38 | $82.98 |
| Target upside | +17.07% | +13.79% |
| Metric | CARG | CVNA |
|---|---|---|
| Revenue growth | 13.10% | 52.40% |
| Earnings growth | 141.00% | 61.50% |
| EPS growth | +141.00% | +61.50% |
| FCF margin | +24.95% | +1.69% |
| Operating margin | 25.27% | 9.22% |
| Profit margin | 18.19% | 6.26% |
| ROIC proxy | 53.47% | 58.77% |
| Return on equity | 53.47% | 58.77% |
| Dividend yield | 0.00% | 0.00% |
| Beta | 1.17 | 3.49 |
| Debt/equity | 70.03 | 110.88 |
| Current ratio | 1.85 | 3.93 |
| Quick ratio | 1.51 | 1.72 |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | CARG | CVNA |
|---|---|---|---|
| 1Y | Growth | +1.64% | -0.53% |
| CAGR | +1.65% | -0.53% | |
| Sharpe ratio | 0.12 | 0.23 | |
| Max drawdown | 30.92% | 41.21% | |
| Max daily drop | 8.96% | 14.17% | |
| Max wkly drop | 21.28% | 15.25% | |
| 5Y | Growth | +16.36% | +11.09% |
| CAGR | +3.08% | +2.13% | |
| Sharpe ratio | 0.22 | 0.52 | |
| Max drawdown | 75.38% | 98.91% | |
| Max daily drop | 25.51% | 42.92% | |
| Max wkly drop | 39.69% | 51.83% | |
| 10Y | Growth | +28.17% | +3183.33% |
| CAGR | +2.83% | +45.32% | |
| Sharpe ratio | 0.22 | 0.81 | |
| Max drawdown | 78.66% | 98.99% | |
| Max daily drop | 26.54% | 42.92% | |
| Max wkly drop | 39.69% | 51.83% |
| Category | CARG | CVNA |
|---|---|---|
| Company | CarGurus, Inc. | Carvana Co. |
| Sector | Online Automotive Marketplace | Used Vehicle E-Commerce and Retail |
| Industry | N/A | N/A |
| Core business | CarGurus operates an online marketplace connecting car buyers with dealer inventory, monetizing primarily through dealer subscription and advertising products rather than owning vehicle inventory itself. | Carvana buys, reconditions, and sells used vehicles directly to consumers through an online platform paired with its own logistics, vending-machine pickup locations, and financing operations. |
| Investor focus | Investors watch CarGurus's dealer subscriber growth and retention, its asset-light marketplace margins, and its wholesale/digital retail (CarOffer) segment performance. | Investors focus on Carvana's unit sales growth, gross profit per unit, and its balance sheet and debt load following its earlier near-bankruptcy restructuring and subsequent turnaround. |
- Asset-light marketplace model with high incremental margins on dealer subscriptions
- Large, established consumer traffic base for vehicle shopping
- Diversified monetization through dealer subscriptions, advertising, and wholesale products
- Vertically integrated model covering reconditioning, logistics, sales, and financing
- Significant unit economics and profitability improvement since its 2023 debt restructuring
- Distinctive brand and vending-machine delivery experience differentiating the customer experience
- Revenue tied to dealer marketing budgets, which can be cyclical
- Wholesale/CarOffer segment has been a source of margin volatility
- Competition from other listing platforms and direct-to-consumer retailers like Carvana
- Still carries a meaningful debt load from its restructuring history
- Capital-intensive model with real inventory and logistics risk versus asset-light marketplaces
- Used vehicle pricing and consumer credit cycles directly affect margins and demand
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