Comprehensive Stock Comparison
Compare Karooooo Ltd. (KARO) vs NVIDIA Corporation (NVDA) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | NVDA | 65.5% revenue growth vs KARO's 8.6% |
| Value | KARO | Lower P/E (1.4x vs 21.9x), PEG 0.09 vs 0.23 |
| Quality / Margins | NVDA | 55.6% net margin vs KARO's 19.5% |
| Stability / Safety | KARO | Beta 0.99 vs NVDA's 1.73 |
| Dividends | KARO | 2.7% yield, 4-year raise streak, vs NVDA's 0.0% |
| Momentum (1Y) | NVDA | +41.9% vs KARO's +7.1% |
| Efficiency (ROA) | NVDA | 58.1% ROA vs KARO's 19.6%, ROIC 81.8% vs 34.4% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Karooooo operates a mobility software-as-a-service platform that provides real-time vehicle tracking, fleet management, and logistics solutions primarily for commercial fleets across multiple continents. The company generates revenue through subscription-based SaaS fees for its telematics platform—which includes fleet management, asset tracking, and insurance analytics services—with the majority coming from recurring subscriptions. Its competitive advantage lies in its comprehensive, integrated platform that combines real-time data analytics with deep operational insights, creating switching costs for fleet operators who rely on its ecosystem for efficiency and risk management.
NVIDIA designs and sells graphics processing units (GPUs) and accelerated computing platforms that power artificial intelligence, gaming, and professional visualization applications. The company generates revenue primarily through its Data Center segment — which includes AI chips and systems — accounting for over 70% of sales, supplemented by its Gaming GPU business and professional visualization offerings. NVIDIA's competitive moat stems from its CUDA software ecosystem — which locks developers into its hardware architecture — and its years of architectural leadership in parallel processing for AI workloads.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
NVDA leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). KARO leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
NVDA is the larger business by revenue, generating $215.9B annually — 41.2x KARO's $5.2B. NVDA is the more profitable business, keeping 55.6% of every revenue dollar as net income compared to KARO's 19.5%. On growth, NVDA holds the edge at +73.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | KAROKarooooo Ltd. | NVDANVIDIA Corporation |
|---|---|---|
| RevenueTrailing 12 months | $5.2B | $215.9B |
| EBITDAEarnings before interest/tax | $2.2B | $133.2B |
| Net IncomeAfter-tax profit | $1.0B | $120.1B |
| Free Cash FlowCash after capex | $0 | $96.7B |
| Gross MarginGross profit ÷ Revenue | +69.3% | +71.1% |
| Operating MarginEBIT ÷ Revenue | +27.7% | +60.4% |
| Net MarginNet income ÷ Revenue | +19.5% | +55.6% |
| FCF MarginFCF ÷ Revenue | +20.3% | +44.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.8% | +73.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +9.2% | +97.8% |
Valuation Metrics
At 25.3x trailing earnings, KARO trades at a 30% valuation discount to NVDA's 36.2x P/E. Adjusting for growth (PEG ratio), NVDA offers better value at 0.38x vs KARO's 1.58x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | KAROKarooooo Ltd. | NVDANVIDIA Corporation |
|---|---|---|
| Market CapShares × price | $1.5B | $4.31T |
| Enterprise ValueMkt cap + debt − cash | $1.4B | $4.31T |
| Trailing P/EPrice ÷ TTM EPS | 25.30x | 36.16x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.40x | 21.88x |
| PEG RatioP/E ÷ EPS growth rate | 1.58x | 0.38x |
| EV / EBITDAEnterprise value multiple | 11.00x | 32.33x |
| Price / SalesMarket cap ÷ Revenue | 5.10x | 19.94x |
| Price / BookPrice ÷ Book value/share | 7.16x | 27.52x |
| Price / FCFMarket cap ÷ FCF | 25.09x | 44.54x |
Profitability & Efficiency
NVDA delivers a 76.3% return on equity — every $100 of shareholder capital generates $76 in annual profit, vs $32 for KARO. NVDA carries lower financial leverage with a 0.07x debt-to-equity ratio, signaling a more conservative balance sheet compared to KARO's 0.22x. On the Piotroski fundamental quality scale (0–9), KARO scores 6/9 vs NVDA's 4/9, reflecting solid financial health.
| Metric | KAROKarooooo Ltd. | NVDANVIDIA Corporation |
|---|---|---|
| ROE (TTM)Return on equity | +31.6% | +76.3% |
| ROA (TTM)Return on assets | +19.6% | +58.1% |
| ROICReturn on invested capital | +34.4% | +81.8% |
| ROCEReturn on capital employed | +37.6% | +97.2% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.22x | 0.07x |
| Net DebtTotal debt minus cash | -$319M | $807M |
| Cash & Equiv.Liquid assets | $1.0B | $10.6B |
| Total DebtShort + long-term debt | $728M | $11.4B |
| Interest CoverageEBIT ÷ Interest expense | 28.64x | 545.03x |
Total Returns (with DRIP)
A $10,000 investment in NVDA five years ago would be worth $128,116 today (with dividends reinvested), compared to $15,004 for KARO. Over the past 12 months, NVDA leads with a +41.9% total return vs KARO's +7.1%. The 3-year compound annual growth rate (CAGR) favors NVDA at 96.9% vs KARO's 25.7% — a key indicator of consistent wealth creation.
| Metric | KAROKarooooo Ltd. | NVDANVIDIA Corporation |
|---|---|---|
| YTD ReturnYear-to-date | +5.7% | -6.2% |
| 1-Year ReturnPast 12 months | +7.1% | +41.9% |
| 3-Year ReturnCumulative with dividends | +98.4% | +663.5% |
| 5-Year ReturnCumulative with dividends | +50.0% | +1181.2% |
| 10-Year ReturnCumulative with dividends | +50.0% | +22525.7% |
| CAGR (3Y)Annualised 3-year return | +25.7% | +96.9% |
Risk & Volatility
KARO is the less volatile stock with a 0.99 beta — it tends to amplify market swings less than NVDA's 1.73 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. NVDA currently trades 83.5% from its 52-week high vs KARO's 74.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | KAROKarooooo Ltd. | NVDANVIDIA Corporation |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.99x | 1.73x |
| 52-Week HighHighest price in past year | $63.36 | $212.19 |
| 52-Week LowLowest price in past year | $35.88 | $86.62 |
| % of 52W HighCurrent price vs 52-week peak | +74.5% | +83.5% |
| RSI (14)Momentum oscillator 0–100 | 48.8 | 47.4 |
| Avg Volume (50D)Average daily shares traded | 38K | 136.2M |
Analyst Outlook
Wall Street rates KARO as "Buy" and NVDA as "Buy". Consensus price targets imply 52.9% upside for NVDA (target: $271) vs 29.2% for KARO (target: $61). KARO is the only dividend payer here at 2.68% yield — a key consideration for income-focused portfolios.
| Metric | KAROKarooooo Ltd. | NVDANVIDIA Corporation |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $61.00 | $271.00 |
| # AnalystsCovering analysts | 3 | 79 |
| Dividend YieldAnnual dividend ÷ price | +2.7% | +0.0% |
| Dividend StreakConsecutive years of raises | 4 | 2 |
| Dividend / ShareAnnual DPS | $20.21 | $0.04 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +0.9% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Apr 21 | Feb 26 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 100 | 147.34 | +47.3% |
| NVIDIA Corporation (NVDA) | 100 | 1,344.03 | +1244.0% |
NVIDIA Corporation (NVDA) returned +1.2K% over 5 years vs Karooooo Ltd. (KARO)'s +50%. A $10,000 investment in NVDA 5 years ago would be worth $128,116 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | $1.8B | $4.6B | +160.0% |
| NVIDIA Corporation (NVDA) | $6.9B | $215.9B | +3025.0% |
NVIDIA Corporation's revenue grew from $6.9B (2017) to $215.9B (2026) — a 46.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 11.0% | 20.2% | +83.4% |
| NVIDIA Corporation (NVDA) | 24.1% | 55.6% | +130.6% |
NVIDIA Corporation's net margin went from 24% (2017) to 56% (2026).
Chart 4P/E Ratio History — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 3.1 | 1.5 | -51.6% |
| NVIDIA Corporation (NVDA) | 75.6 | 36.2 | -52.1% |
Karooooo Ltd. has traded in a 1x–3x P/E range over 5 years; current trailing P/E is ~25x. NVIDIA Corporation has traded in a 28x–291x P/E range over 10 years; current trailing P/E is ~36x.
Chart 5EPS Growth — 10 Years
| Stock | 2017 | 2026 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 9.5 | 29.81 | +213.8% |
| NVIDIA Corporation (NVDA) | 0.06 | 4.9 | +7556.3% |
NVIDIA Corporation's EPS grew from $0.06 (2017) to $4.90 (2026) — a 62% CAGR.
Chart 6Free Cash Flow — 5 Years
Karooooo Ltd. generated $929M FCF in 2025 (+125% vs 2021). NVIDIA Corporation generated $97B FCF in 2026 (+1960% vs 2021).
KARO vs NVDA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is KARO or NVDA a better buy right now?
Karooooo Ltd. (KARO) offers the better valuation at 25.3x trailing P/E (1.4x forward), making it the more compelling value choice. Analysts rate Karooooo Ltd. (KARO) a "Buy" — based on 3 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.
02Which has the better valuation — KARO or NVDA?
On trailing P/E, Karooooo Ltd. (KARO) is the cheapest at 25.3x versus NVIDIA Corporation at 36.2x. On forward P/E, Karooooo Ltd. is actually cheaper at 1.4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Karooooo Ltd. wins at 0.09x versus NVIDIA Corporation's 0.23x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — KARO or NVDA?
Over the past 5 years, NVIDIA Corporation (NVDA) delivered a total return of +1181%, compared to +50.0% for Karooooo Ltd. (KARO). A $10,000 investment in NVDA five years ago would be worth approximately $128K today (assuming dividends reinvested). Over 10 years, the gap is even starker: NVDA returned +225.3% versus KARO's +50.0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — KARO or NVDA?
By beta (market sensitivity over 5 years), Karooooo Ltd. (KARO) is the lower-risk stock at 0.99β versus NVIDIA Corporation's 1.73β — meaning NVDA is approximately 73% more volatile than KARO relative to the S&P 500. On balance sheet safety, NVIDIA Corporation (NVDA) carries a lower debt/equity ratio of 7% versus 22% for Karooooo Ltd. — giving it more financial flexibility in a downturn.
05Which has better profit margins — KARO or NVDA?
NVIDIA Corporation (NVDA) is the more profitable company, earning 55.6% net margin versus 20.2% for Karooooo Ltd. — meaning it keeps 55.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NVDA leads at 60.4% versus 28.7% for KARO. At the gross margin level — before operating expenses — NVDA leads at 71.1%, 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.
06Is KARO or NVDA more undervalued right now?
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, Karooooo Ltd. (KARO) is the more undervalued stock at a PEG of 0.09x versus NVIDIA Corporation's 0.23x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Karooooo Ltd. (KARO) trades at 1.4x forward P/E versus 21.9x for NVIDIA Corporation — 20.5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for NVDA: 52.9% to $271.00.
07Which pays a better dividend — KARO or NVDA?
In this comparison, KARO (2.7% yield) pays a dividend. NVDA does not pay a meaningful dividend and should not be held primarily for income.
08Is KARO or NVDA better for a retirement portfolio?
For long-horizon retirement investors, Karooooo Ltd. (KARO) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.99), 2.7% yield). NVIDIA Corporation (NVDA) carries a higher beta of 1.73 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (KARO: +50.0%, NVDA: +225.3%), 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.
09What are the main differences between KARO and NVDA?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. KARO pays a dividend while NVDA 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.
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