VRM vs PAG vs CVNA vs AN

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). AutoNation, Inc. (AN) offers the better valuation at 12. 1x trailing P/E (9. 6x forward), making it the more compelling value choice. Analysts rate Penske Automotive Group, Inc. (PAG) a "Buy" — based on 26 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, AutoNation, Inc.

(AN) is the cheapest at 12. 1x versus Carvana Co. at 46. 1x. On forward P/E, AutoNation, Inc. is actually cheaper at 9. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: AutoNation, Inc. wins at 0. 30x versus Penske Automotive Group, Inc. 's 0. 82x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Penske Automotive Group, Inc.

(PAG) delivered a total return of +107. 6%, compared to -99. 6% for Vroom, Inc. (VRM). Over 10 years, the gap is even starker: CVNA returned +34. 1% versus VRM's -99. 6%. 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), Penske Automotive Group, Inc.

(PAG) is the lower-risk stock at 0. 67β versus Carvana Co. 's 1. 89β — meaning CVNA is approximately 182% more volatile than PAG 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 -2. 5% for Penske Automotive Group, 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. 30x versus Penske Automotive Group, Inc. 's 0. 82x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, AutoNation, Inc. (AN) trades at 9. 6x forward P/E versus 13. 0x for Penske Automotive Group, Inc. — 3. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CVNA: 521. 0% to $484. 00.

In this comparison, PAG (3.

0% yield) pays a dividend. VRM, CVNA, AN do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Penske Automotive Group, Inc.

(PAG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 67), 3. 0% yield, +433. 3% 10Y return). Carvana Co. (CVNA) carries a higher beta of 1. 89 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (PAG: +433. 3%, CVNA: +34. 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: VRM is a small-cap quality compounder stock; PAG is a mid-cap deep-value stock; CVNA is a mid-cap high-growth stock; AN is a small-cap deep-value stock. PAG pays a dividend while VRM, CVNA, AN 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.