Comprehensive Stock Comparison
Compare Karooooo Ltd. (KARO) vs Uber Technologies, Inc. (UBER) 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 | UBER | 18.3% revenue growth vs KARO's 8.6% |
| Value | KARO | Lower P/E (1.4x vs 22.4x) |
| Quality / Margins | KARO | 19.5% net margin vs UBER's 19.3% |
| Stability / Safety | KARO | Beta 0.99 vs UBER's 1.12, lower leverage |
| Dividends | KARO | 2.7% yield; 4-year raise streak; UBER pays no meaningful dividend |
| Momentum (1Y) | KARO | +7.1% vs UBER's -0.8% |
| Efficiency (ROA) | KARO | 19.6% ROA vs UBER's 16.3%, ROIC 34.4% vs 13.6% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
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.
Uber operates a global platform connecting riders with drivers for transportation and connecting consumers with restaurants and stores for delivery services. It generates revenue primarily from its Mobility segment — taking a commission from ride fares — and its Delivery segment — taking fees from restaurant and grocery orders, with both segments contributing roughly equal shares. Its key advantage is its massive two-sided network effect — the more drivers and restaurants on the platform, the better the service for consumers, creating a powerful moat that's difficult for competitors to replicate at scale.
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
KARO leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). UBER leads in 1 (Valuation Metrics). 1 tied.
Financial Metrics (TTM)
UBER is the larger business by revenue, generating $52.0B annually — 9.9x KARO's $5.2B. Profitability is closely matched — net margins range from 19.5% (KARO) to 19.3% (UBER).
| Metric | KAROKarooooo Ltd. | UBERUber Technologies… |
|---|---|---|
| RevenueTrailing 12 months | $5.2B | $52.0B |
| EBITDAEarnings before interest/tax | $2.2B | $6.3B |
| Net IncomeAfter-tax profit | $1.0B | $10.1B |
| Free Cash FlowCash after capex | $0 | $9.8B |
| Gross MarginGross profit ÷ Revenue | +69.3% | +39.8% |
| Operating MarginEBIT ÷ Revenue | +27.7% | +10.7% |
| Net MarginNet income ÷ Revenue | +19.5% | +19.3% |
| FCF MarginFCF ÷ Revenue | +20.3% | +18.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | +17.8% | +20.1% |
| EPS Growth (YoY)Latest quarter vs prior year | +9.2% | -95.6% |
Valuation Metrics
At 16.0x trailing earnings, UBER trades at a 37% valuation discount to KARO's 25.3x P/E. On an enterprise value basis, KARO's 11.0x EV/EBITDA is more attractive than UBER's 25.8x.
| Metric | KAROKarooooo Ltd. | UBERUber Technologies… |
|---|---|---|
| Market CapShares × price | $1.5B | $156.7B |
| Enterprise ValueMkt cap + debt − cash | $1.4B | $162.4B |
| Trailing P/EPrice ÷ TTM EPS | 25.30x | 16.01x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.40x | 22.40x |
| PEG RatioP/E ÷ EPS growth rate | 1.58x | — |
| EV / EBITDAEnterprise value multiple | 11.00x | 25.77x |
| Price / SalesMarket cap ÷ Revenue | 5.10x | 3.01x |
| Price / BookPrice ÷ Book value/share | 7.16x | 5.66x |
| Price / FCFMarket cap ÷ FCF | 25.09x | 16.05x |
Profitability & Efficiency
UBER delivers a 35.8% return on equity — every $100 of shareholder capital generates $36 in annual profit, vs $32 for KARO. KARO carries lower financial leverage with a 0.22x debt-to-equity ratio, signaling a more conservative balance sheet compared to UBER's 0.48x. On the Piotroski fundamental quality scale (0–9), UBER scores 7/9 vs KARO's 6/9, reflecting strong financial health.
| Metric | KAROKarooooo Ltd. | UBERUber Technologies… |
|---|---|---|
| ROE (TTM)Return on equity | +31.6% | +35.8% |
| ROA (TTM)Return on assets | +19.6% | +16.3% |
| ROICReturn on invested capital | +34.4% | +13.6% |
| ROCEReturn on capital employed | +37.6% | +12.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.22x | 0.48x |
| Net DebtTotal debt minus cash | -$319M | -$6.3B |
| Cash & Equiv.Liquid assets | $1.0B | $7.7B |
| Total DebtShort + long-term debt | $728M | $13.5B |
| Interest CoverageEBIT ÷ Interest expense | 28.64x | 17.29x |
Total Returns (with DRIP)
A $10,000 investment in KARO five years ago would be worth $15,004 today (with dividends reinvested), compared to $13,864 for UBER. Over the past 12 months, KARO leads with a +7.1% total return vs UBER's -0.8%. The 3-year compound annual growth rate (CAGR) favors UBER at 31.4% vs KARO's 25.7% — a key indicator of consistent wealth creation.
| Metric | KAROKarooooo Ltd. | UBERUber Technologies… |
|---|---|---|
| YTD ReturnYear-to-date | +5.7% | -9.0% |
| 1-Year ReturnPast 12 months | +7.1% | -0.8% |
| 3-Year ReturnCumulative with dividends | +98.4% | +126.8% |
| 5-Year ReturnCumulative with dividends | +50.0% | +38.6% |
| 10-Year ReturnCumulative with dividends | +50.0% | +81.4% |
| CAGR (3Y)Annualised 3-year return | +25.7% | +31.4% |
Risk & Volatility
KARO is the less volatile stock with a 0.99 beta — it tends to amplify market swings less than UBER's 1.12 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | KAROKarooooo Ltd. | UBERUber Technologies… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.99x | 1.12x |
| 52-Week HighHighest price in past year | $63.36 | $101.99 |
| 52-Week LowLowest price in past year | $35.88 | $60.63 |
| % of 52W HighCurrent price vs 52-week peak | +74.5% | +73.9% |
| RSI (14)Momentum oscillator 0–100 | 48.8 | 47.6 |
| Avg Volume (50D)Average daily shares traded | 38K | 17.0M |
Analyst Outlook
Wall Street rates KARO as "Buy" and UBER as "Buy". Consensus price targets imply 39.3% upside for UBER (target: $105) 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. | UBERUber Technologies… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $61.00 | $105.04 |
| # AnalystsCovering analysts | 3 | 61 |
| Dividend YieldAnnual dividend ÷ price | +2.7% | — |
| Dividend StreakConsecutive years of raises | 4 | — |
| Dividend / ShareAnnual DPS | $20.21 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +0.0% | +4.2% |
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% |
| Uber Technologies, … (UBER) | 100 | 140.35 | +40.3% |
Karooooo Ltd. (KARO) returned +50% over 5 years vs Uber Technologies, … (UBER)'s +39%. A $10,000 investment in KARO 5 years ago would be worth $15,004 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | $1.8B | $4.6B | +160.0% |
| Uber Technologies, … (UBER) | $3.8B | $52.0B | +1252.8% |
Uber Technologies, Inc.'s revenue grew from $3.8B (2016) to $52.0B (2025) — a 33.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 11.0% | 20.2% | +83.4% |
| Uber Technologies, … (UBER) | -9.6% | 19.3% | +300.8% |
Uber Technologies, Inc.'s net margin went from -10% (2016) to 19% (2025).
Chart 4P/E Ratio History — 5 Years
| Stock | 2021 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 3.1 | 1.5 | -51.6% |
| Uber Technologies, … (UBER) | 70.8 | 17.3 | -75.6% |
Karooooo Ltd. has traded in a 1x–3x P/E range over 5 years; current trailing P/E is ~25x. Uber Technologies, Inc. has traded in a 13x–71x P/E range over 3 years; current trailing P/E is ~16x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Karooooo Ltd. (KARO) | 9.5 | 29.81 | +213.8% |
| Uber Technologies, … (UBER) | -0.24 | 4.71 | +2062.5% |
Uber Technologies, Inc.'s EPS grew from $-0.24 (2016) to $4.71 (2025).
Chart 6Free Cash Flow — 5 Years
Karooooo Ltd. generated $929M FCF in 2025 (+125% vs 2021). Uber Technologies, Inc. generated $10B FCF in 2025 (+1414% vs 2021).
KARO vs UBER: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is KARO or UBER a better buy right now?
Uber Technologies, Inc. (UBER) offers the better valuation at 16.0x trailing P/E (22.4x 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 UBER?
On trailing P/E, Uber Technologies, Inc. (UBER) is the cheapest at 16.0x versus Karooooo Ltd. at 25.3x. On forward P/E, Karooooo Ltd. is actually cheaper at 1.4x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — KARO or UBER?
Over the past 5 years, Karooooo Ltd. (KARO) delivered a total return of +50.0%, compared to +38.6% for Uber Technologies, Inc. (UBER). A $10,000 investment in KARO five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: UBER returned +81.4% 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 UBER?
By beta (market sensitivity over 5 years), Karooooo Ltd. (KARO) is the lower-risk stock at 0.99β versus Uber Technologies, Inc.'s 1.12β — meaning UBER is approximately 12% more volatile than KARO relative to the S&P 500. On balance sheet safety, Karooooo Ltd. (KARO) carries a lower debt/equity ratio of 22% versus 48% for Uber Technologies, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — KARO or UBER?
Karooooo Ltd. (KARO) is the more profitable company, earning 20.2% net margin versus 19.3% for Uber Technologies, Inc. — meaning it keeps 20.2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KARO leads at 28.7% versus 10.7% for UBER. At the gross margin level — before operating expenses — KARO leads at 70.1%, 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 UBER more undervalued right now?
On forward earnings alone, Karooooo Ltd. (KARO) trades at 1.4x forward P/E versus 22.4x for Uber Technologies, Inc. — 21.0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for UBER: 39.3% to $105.04.
07Which pays a better dividend — KARO or UBER?
In this comparison, KARO (2.7% yield) pays a dividend. UBER does not pay a meaningful dividend and should not be held primarily for income.
08Is KARO or UBER 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). Both have compounded well over 10 years (KARO: +50.0%, UBER: +81.4%), 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.
09What are the main differences between KARO and UBER?
Both stocks operate in the Technology sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: KARO is a small-cap quality compounder stock; UBER is a mid-cap deep-value stock. KARO pays a dividend while UBER 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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