AutoNation vs Carvana
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KIRA’s take AI analyst
I put AutoNation and Carvana side by side, using each one’s latest annual report. Here is what stands out:
- AutoNation is the larger business, with $27.6B of revenue in fiscal 2025 against $20.3B for Carvana.
- Carvana grew revenue faster (48.6%, against 3.2%).
- Carvana kept more of each dollar of sales as operating profit (9.3% operating margin, against 4.5%).
- Carvana turned more of its sales into free cash flow (4.4% FCF margin, against −0.7%).
- Carvana earned a higher return on the capital invested in it (24.6%, against 14.7%).
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
AutoNation
AN
1/10
Share count change
Carvana
CVNA
8/10
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equity
Side by side
Best in the row
| Latest fiscal year | AN FY25 | CVNA FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.4B | $41.9B |
| Revenue | $27.6B | $20.3B |
| Free cash flow | −$198M | $889M |
| Net income | $649M | $1.4B |
| Growth | ||
| Revenue growth | 3.2% | 48.6% |
| 5-year growth | 6.3% | 29.5% |
| Share count change | −6.9% | 69.6% |
| Profitability | ||
| Gross margin | 17.9% | 20.6% |
| Operating margin | 4.5% | 9.3% |
| Net margin | 2.4% | 6.9% |
| FCF margin | −0.7% | 4.4% |
| Return on capital | 14.7% | 24.6% |
| Return on equity | 27.1% | 59.9% |
| Balance sheet | ||
| Net debt | $3.9B | $2.7B |
| Net debt / EBITDA | — | — |
| Dividends and buybacks | $792M | $0.0M |
| Valuation & quality | ||
| P/E | 7.4x | — |
| Piotroski F-score | 6 | 6 |
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.