CVNA vs KMX vs AN vs VRM vs LAD

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). Lithia Motors, Inc. (LAD) offers the better valuation at 9. 0x trailing P/E (8. 5x forward), making it the more compelling value choice. Analysts rate AutoNation, Inc. (AN) a "Buy" — based on 34 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, Lithia Motors, Inc.

(LAD) is the cheapest at 9. 0x versus Carvana Co. at 47. 4x. On forward P/E, Lithia Motors, Inc. is actually cheaper at 8. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: AutoNation, Inc. wins at 0. 31x versus Lithia Motors, Inc. 's 0. 80x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, AutoNation, Inc.

(AN) delivered a total return of +94. 1%, 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), AutoNation, Inc.

(AN) is the lower-risk stock at 0. 85β versus Carvana Co. 's 2. 14β — meaning CVNA is approximately 152% more volatile than AN relative to the S&P 500. On balance sheet safety, Carvana Co. (CVNA) carries a lower debt/equity ratio of 15% versus 4% for AutoNation, Inc. — 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: Carvana Co. grew EPS 431. 4% year-over-year, compared to 0. 7% for AutoNation, 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.

Carvana Co.

(CVNA) is the more profitable company, earning 6. 9% net margin versus -1422. 3% for Vroom, Inc. — meaning it keeps 6. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CVNA leads at 9. 3% 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, AutoNation, Inc. (AN) is the more undervalued stock at a PEG of 0. 31x versus Lithia Motors, Inc. 's 0. 80x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Lithia Motors, Inc. (LAD) trades at 8. 5x forward P/E versus 51. 4x for Carvana Co. — 42. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LAD: 41. 4% to $411. 67.

In this comparison, LAD (0.

7% yield) pays a dividend. CVNA, KMX, AN, VRM do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Lithia Motors, Inc.

(LAD) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 09), 0. 7% yield, +264. 5% 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 (LAD: +264. 5%, 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.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: CVNA is a mid-cap high-growth stock; KMX is a small-cap deep-value stock; AN is a small-cap deep-value stock; VRM is a small-cap quality compounder stock; LAD is a small-cap deep-value stock. LAD pays a dividend while CVNA, KMX, AN, 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.