CarGurus vs Cars.com Which Is More Reliable?

CarGurus and Cars.com are two prominent players in the automotive industry, each offering online platforms for buying and selling cars. Both companies have experienced fluctuations in their stock prices over the years, with investors closely monitoring their performance. CarGurus is known for its user-friendly interface and innovative approach to car shopping, while Cars.com has a longstanding reputation in the industry. This comparison of CarGurus vs Cars.com stocks will analyze their financial performance, market trends, and future prospects.

CarGurus or Cars.com?

When comparing CarGurus and Cars.com, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CarGurus and Cars.com.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CarGurus has a dividend yield of -%, while Cars.com has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CarGurus reports a 5-year dividend growth of 0.00% year and a payout ratio of -0.13%. On the other hand, Cars.com reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CarGurus P/E ratio at -91.97 and Cars.com's P/E ratio at 32.32. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CarGurus P/B ratio is 8.14 while Cars.com's P/B ratio is 2.52.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CarGurus has seen a 5-year revenue growth of 0.94%, while Cars.com's is 0.10%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CarGurus's ROE at -8.08% and Cars.com's ROE at 7.95%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $37.70 for CarGurus and $18.93 for Cars.com. Over the past year, CarGurus's prices ranged from $21.18 to $39.10, with a yearly change of 84.61%. Cars.com's prices fluctuated between $15.05 and $21.24, with a yearly change of 41.13%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.