TrueCar vs Carvana Which Is More Promising?

TrueCar and Carvana are two well-known companies in the world of online car sales. TrueCar operates a platform that connects car buyers with dealers, while Carvana focuses on selling cars directly to consumers through its e-commerce platform. Both companies have seen significant growth in recent years, but their stocks have taken different paths. TrueCar has faced challenges with its business model, while Carvana has experienced impressive stock performance. In this comparison, we will analyze the performance and prospects of TrueCar vs Carvana stocks.

TrueCar or Carvana?

When comparing TrueCar 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 TrueCar 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. TrueCar has a dividend yield of 0%, while Carvana has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TrueCar reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 TrueCar P/E ratio at 0.00 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. TrueCar P/B ratio is 0.00 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, TrueCar has seen a 5-year revenue growth of 0.00%, while Carvana's is 0.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TrueCar's ROE at 0.00% and Carvana's ROE at 4.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.00 for TrueCar and $246.68 for Carvana. Over the past year, TrueCar's prices ranged from $0.00 to $0.00, with a yearly change of 0.00%. 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.