CARG vs CARS vs TRU vs CVNA vs VRM

For growth investors, Carvana Co.

(CVNA) is the stronger pick with 48. 6% revenue growth year-over-year, versus -98. 7% for Vroom, Inc. (VRM). CarGurus, Inc. (CARG) offers the better valuation at 24. 6x trailing P/E (15. 1x forward), making it the more compelling value choice. Analysts rate CarGurus, Inc. (CARG) a "Buy" — based on 23 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, CarGurus, Inc.

(CARG) is the cheapest at 24. 6x versus Carvana Co. at 47. 4x. On forward P/E, Cars. com Inc. is actually cheaper at 5. 8x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: CarGurus, Inc. wins at 0. 85x versus TransUnion's 2. 87x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Carvana Co.

(CVNA) delivered a total return of +61. 5%, compared to -99. 6% for Vroom, Inc. (VRM). Over 10 years, the gap is even starker: CVNA returned +35. 1% versus VRM's -99. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), CarGurus, Inc.

(CARG) is the lower-risk stock at 0. 89β versus Carvana Co. 's 2. 14β — meaning CVNA is approximately 141% more volatile than CARG relative to the S&P 500. On balance sheet safety, Carvana Co. (CVNA) carries a lower debt/equity ratio of 15% versus 113% for TransUnion — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Carvana Co.

(CVNA) is pulling ahead at 48. 6% versus -98. 7% for Vroom, Inc. (VRM). On earnings-per-share growth, the picture is similar: CarGurus, Inc. grew EPS 675. 0% year-over-year, compared to -55. 6% for Cars. com Inc.. Over a 3-year CAGR, CVNA leads at 14. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

CarGurus, Inc.

(CARG) is the more profitable company, earning 16. 6% net margin versus -1422. 3% for Vroom, Inc. — meaning it keeps 16. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CARG leads at 20. 7% versus -1092. 2% for VRM. At the gross margin level — before operating expenses — VRM leads at 100. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, CarGurus, Inc. (CARG) is the more undervalued stock at a PEG of 0. 85x versus TransUnion's 2. 87x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Cars. com Inc. (CARS) trades at 5. 8x forward P/E versus 51. 4x for Carvana Co. — 45. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TRU: 30. 1% to $94. 88.

In this comparison, TRU (0.

6% yield) pays a dividend. CARG, CARS, CVNA, VRM do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, TransUnion (TRU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0.

6% yield, +142. 0% 10Y return). Carvana Co. (CVNA) carries a higher beta of 2. 14 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TRU: +142. 0%, CVNA: +35. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (CARG (Consumer Cyclical) and CARS (Consumer Cyclical) and TRU (Industrials) and CVNA (Consumer Cyclical) and VRM (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: CARG is a small-cap quality compounder stock; CARS is a small-cap quality compounder stock; TRU is a mid-cap quality compounder stock; CVNA is a mid-cap high-growth stock; VRM is a small-cap quality compounder stock. TRU pays a dividend while CARG, CARS, CVNA, VRM do not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.