CarGurus vs Carvana Which Performs Better?

CarGurus and Carvana are two popular companies in the automotive industry that have been gaining significant attention in the stock market. CarGurus is an online automotive marketplace that connects buyers and sellers, while Carvana is a leading e-commerce platform for buying and selling used cars. Both companies have seen impressive growth in recent years, but their stock performances have differed. Investors are now closely monitoring the competition between CarGurus and Carvana stocks to determine which is the better investment opportunity.

CarGurus or Carvana?

When comparing CarGurus and Carvana, 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 Carvana.

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 Carvana 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, Carvana 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 -92.57 and Carvana's P/E ratio at 1830.63. 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 8.20 while Carvana's P/B ratio is 50.93.

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 Carvana's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CarGurus's ROE at -8.08% and Carvana's ROE at 4.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $38.16 for CarGurus and $246.68 for Carvana. Over the past year, CarGurus's prices ranged from $21.18 to $39.09, with a yearly change of 84.54%. Carvana's prices fluctuated between $37.47 and $268.34, with a yearly change of 616.14%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.