CarGurus vs Yelp
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KIRA’s take AI analyst
I put CarGurus and Yelp side by side, using each one’s latest annual report. Here is what stands out:
- Yelp is the larger business, with $1.5B of revenue in fiscal 2025 against $907M for CarGurus, about 1.6 times as much.
- CarGurus grew revenue faster (13.7%, against 3.8%).
- CarGurus kept more of each dollar of sales as operating profit (27.0% operating margin, against 12.6%).
- CarGurus turned more of its sales into free cash flow (31.9% FCF margin, against 22.1%).
- Investors pay more for each dollar of CarGurus’s earnings: a P/E of 17.1x against 9.6x for Yelp.
Who comes out ahead
Of the 7 measures where higher (or lower) is clearly better, how many each company leads.
CarGurus
CARG
5/7
Revenue growthOperating marginNet marginFCF marginReturn on equity
Yelp
YELP
2/7
5-year growthShare count change
Side by side
Best in the row
| Latest fiscal year | CARG FY25 | YELP FY25 |
|---|---|---|
| Size | ||
| Market cap | $2.9B | $1.1B |
| Revenue | $907M | $1.5B |
| Free cash flow | $289M | $324M |
| Net income | $156M | $146M |
| Growth | ||
| Revenue growth | 13.7% | 3.8% |
| 5-year growth | 10.5% | 10.9% |
| Share count change | −5.5% | −7.8% |
| Profitability | ||
| Gross margin | 92.8% | — |
| Operating margin | 27.0% | 12.6% |
| Net margin | 17.2% | 9.9% |
| FCF margin | 31.9% | 22.1% |
| Return on capital | 90.3% | — |
| Return on equity | 34.0% | 20.0% |
| Balance sheet | ||
| Net debt | −$191M | — |
| Net debt / EBITDA | −0.7x | — |
| Dividends and buybacks | $352M | $291M |
| Valuation & quality | ||
| P/E | 17.1x | 9.6x |
| Piotroski F-score | 7 | — |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.