CVNA vs VRM Stock Comparison: AI Score, Valuation, Performance and Upside
CVNA (Carvana) has executed a remarkable operational turnaround from near-bankruptcy to significant GPU improvement and remains the dominant online used car retailer. VRM (Vroom) has fundamentally restructured away from ecommerce used car retail, exiting the business that competed directly with Carvana and pivoting to auto financing (United Auto Credit) — making a direct comparison complex as these are now very different businesses.
CVNA vs VRM illustrates divergent outcomes in online used car retail — Carvana's successful turnaround and continued dominance versus Vroom's fundamental business model exit, now focused on auto lending rather than direct car sales.
VRM holds the edge across 2 of 5 key metrics in this comparison. VRM has delivered stronger 1-year price return (-66.22% vs -82.78% for CVNA). On fundamentals, CVNA is growing revenue faster (52.40%), while VRM maintains the higher operating margin (30.89%) — a classic growth-versus-profitability split.
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want the dominant online used car retail brand with proven technology, reconditioning infrastructure, and a dramatic operational turnaround
- See Carvana's GPU improvement and SG&A leverage as a sustainable path to meaningful profitability at scale
- Value Carvana's brand recognition, car vending machine PR, and consumer trust built over years of digital car buying innovation
- Want exposure to United Auto Credit's auto lending business or Vroom's automotive data/intelligence services
- Understand Vroom is no longer primarily an online car retailer and are investing in its restructured fintech/data focus
- See the auto lending market opportunity through United Auto Credit as a different risk/reward profile than online car retail
| Metric | CVNA | VRM |
|---|---|---|
| AI scorei | 52.8 | 20.9 |
| AI ranki | #375 | #5126 |
| Latest closei | $65.11 | $9.61 |
| 1M returni | -7.57% | -3.71% |
| 6M returni | -77.87% | -18.70% |
| 1Y returni | -82.78% | -66.22% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | CVNA | VRM |
|---|---|---|
| 1Y ago | $1.72K (-82.8%) started 2025-09-18 | $3.38K (-66.2%) started 2025-09-18 |
| 5Y ago | $1.99K (-80.1%) started 2021-09-20 | $3.1K (-69.0%) started 2025-02-20 |
| 10Y ago | $58.66K (+486.6%) started 2017-04-28 | $3.1K (-69.0%) started 2025-02-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | CVNA | VRM |
|---|---|---|
| Market capi | $83.25B | $50.3M |
| Trailing P/Ei | 39.74 | N/A |
| Forward P/Ei | 33.20 | N/A |
| Price/Salesi | N/A | 0.24 |
| EV/Revenuei | 2.22 | 4.01 |
| Analyst targeti | $82.98 | N/A |
| Target upsidei | +10.49% | N/A |
| Metric | CVNA | VRM |
|---|---|---|
| Revenue growthi | 52.40% | -4.20% |
| Earnings growthi | 61.50% | N/A |
| EPS growthi | +61.50% | N/A |
| FCF margini | +1.69% | +1.98% |
| Operating margini | 9.22% | 30.89% |
| Profit margini | 6.26% | -27.81% |
| ROIC proxyi | 58.77% | -42.80% |
| Return on equityi | 58.77% | -42.80% |
| Dividend yieldi | N/A | 0.00% |
| Payout ratioi | 0.00% | 0.00% |
| Dividend growth streaki | N/A | N/A |
| Betai | 3.49 | 0.43 |
| Debt/equityi | 110.88 | 643.42 |
| Current ratioi | 3.93 | 3.37 |
| Quick ratioi | 1.72 | 3.11 |
Over the past year, CVNA and VRM have moved barely in the same direction (correlation of 0.11), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | CVNA | VRM |
|---|---|---|---|
| 1Y | Growthi | -82.78% | -66.22% |
| CAGRi | -82.80% | -66.25% | |
| Volatilityi | 101.72% | 105.58% | |
| Sharpe ratioi | -0.77 | -0.57 | |
| Sortino ratioi | -0.85 | -0.93 | |
| Max drawdowni | 87.42% | 75.75% | |
| Current drawdowni | 86.39% | 66.22% | |
| Avg drawdowni | 41.76% | 44.37% | |
| Ulcer Indexi | 54.23% | 49.60% | |
| Max daily dropi | 80.52% | 20.26% | |
| Max wkly dropi | 82.62% | 35.88% | |
| 5Y | Growthi | -80.06% | -69.00% |
| CAGRi | -27.59% | -52.48% | |
| Volatilityi | 117.58% | 94.17% | |
| Sharpe ratioi | 0.34 | -0.38 | |
| Sortino ratioi | 0.52 | -0.59 | |
| Max drawdowni | 98.86% | 82.74% | |
| Current drawdowni | 86.39% | 75.96% | |
| Avg drawdowni | 58.44% | 46.77% | |
| Ulcer Indexi | 67.47% | 52.17% | |
| Max daily dropi | 80.52% | 20.51% | |
| Max wkly dropi | 82.62% | 35.88% | |
| 10Y | Growthi | +486.58% | -69.00% |
| CAGRi | +20.73% | -52.48% | |
| Volatilityi | 101.75% | 94.17% | |
| Sharpe ratioi | 0.69 | -0.38 | |
| Sortino ratioi | 1.06 | -0.59 | |
| Max drawdowni | 98.99% | 82.74% | |
| Current drawdowni | 86.39% | 75.96% | |
| Avg drawdowni | 40.03% | 46.77% | |
| Ulcer Indexi | 52.71% | 52.17% | |
| Max daily dropi | 80.52% | 20.51% | |
| Max wkly dropi | 82.62% | 35.88% |
| Category | CVNA | VRM |
|---|---|---|
| Company | Carvana Co. | Vroom, Inc. |
| Sector | Consumer Cyclical | Consumer Discretionary - Online Auto Retail |
| Industry | Auto & Truck Dealerships | Credit Services |
| Core business | Carvana is the largest online used car retailer in the United States, providing consumers with a fully digital car buying experience — searching inventory, financing, and completing the purchase online with home delivery and 7-day return policy, with its iconic multi-story car vending machine towers. | Vroom was an online used car retailer offering digital purchases and home delivery similar to Carvana, but has significantly restructured its business — exiting ecommerce sales and pivoting to a vehicle financing (United Auto Credit) and data business model after its original online retail model proved unsustainable. |
| Investor focus | Investors track Carvana's retail unit sales, GPU (gross profit per unit) improvement, SG&A efficiency, and the company's remarkable debt restructuring and operational turnaround following its near-bankruptcy in 2022. | Vroom has fundamentally changed its business model — investors should understand that the original Vroom ecommerce used car business has been substantially wound down, with the company now focused on its auto lending subsidiary United Auto Credit and automotive data. |
- Dominant online used car retail brand with scale advantages in inventory sourcing, reconditioning infrastructure, and technology investment
- Remarkable operational turnaround — Carvana went from near-bankruptcy in 2022 to dramatically improved GPU and profitability by 2023-2024
- Significant reconditioning capacity, auction infrastructure, and technology built over years creates a competitive moat that would be expensive to replicate
- United Auto Credit (auto lending) provides a different revenue model than the original ecommerce business, with potential to generate financing income from auto loans
- Exiting the capital-intensive ecommerce business reduces cash burn associated with vehicle inventory management and reconditioning
- Automotive data and intelligence business provides software services rather than physical vehicle logistics
- Significant debt burden from 2021-2022 financing remains on the balance sheet even after restructuring — interest expense is a substantial ongoing cost
- Used car prices are highly cyclical — Manheim Used Vehicle Value Index fluctuations directly affect Carvana's inventory costs and gross margins
- Competition from CarMax (the market leader), AutoNation digital efforts, and traditional dealers that have improved their online capabilities
- Vroom's original online car retail model has been wound down — investors should understand the company is now fundamentally different from its IPO description
- The United Auto Credit business faces credit risk from auto loans — rising delinquencies in used car lending can impair the portfolio
- Vroom's transformation from ecommerce to fintech/data requires a complete reassessment of the investment thesis versus competitors like Carvana
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