CARG vs TRU

For growth investors, TransUnion (TRU) is the stronger pick with 9.

4% revenue growth year-over-year, versus 5. 0% for CarGurus, Inc. (CARG). 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 TransUnion at 31. 4x. On forward P/E, CarGurus, Inc. is actually cheaper at 15. 1x. 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, CarGurus, Inc.

(CARG) delivered a total return of +39. 5%, compared to -29. 3% for TransUnion (TRU). Over 10 years, the gap is even starker: TRU returned +142. 0% versus CARG's +38. 4%. 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 TransUnion's 1. 36β — meaning TRU is approximately 53% more volatile than CARG relative to the S&P 500. On balance sheet safety, CarGurus, Inc. (CARG) carries a lower debt/equity ratio of 51% versus 113% for TransUnion — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), TransUnion (TRU) is pulling ahead at 9.

4% versus 5. 0% for CarGurus, Inc. (CARG). On earnings-per-share growth, the picture is similar: CarGurus, Inc. grew EPS 675. 0% year-over-year, compared to 60. 0% for TransUnion. Over a 3-year CAGR, TRU leads at 7. 2% 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 10. 0% for TransUnion — 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 18. 7% for TRU. At the gross margin level — before operating expenses — CARG leads at 89. 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, CarGurus, Inc. (CARG) trades at 15. 1x forward P/E versus 15. 3x for TransUnion — 0. 1x 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 does 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). Both have compounded well over 10 years (TRU: +142. 0%, CARG: +38. 4%), 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 TRU (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

TRU pays a dividend while CARG does 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.