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CARS vs GOOG

CARS
Cars.com Inc.
BEARISH
Price
$11.15
Market Cap
$635.8M
Sector
Communication Services
AI Confidence
85%
GOOG
Alphabet Inc.
BULLISH
Price
$337.73
Market Cap
$4.09T
Sector
Communication Services
AI Confidence
85%

Valuation

P/E Ratio
CARS
34.84
GOOG
31.24
Forward P/E
CARS
4.85
GOOG
25.01
P/B Ratio
CARS
1.38
GOOG
9.83
P/S Ratio
CARS
0.88
GOOG
10.14
EV/EBITDA
CARS
6.99
GOOG
26.81

Profitability

Gross Margin
CARS
66.72%
GOOG
59.65%
Operating Margin
CARS
11.82%
GOOG
31.57%
Profit Margin
CARS
2.77%
GOOG
32.81%
ROE
CARS
4.08%
GOOG
35.7%
ROA
CARS
3.48%
GOOG
15.43%

Growth

Revenue Growth
CARS
1.9%
GOOG
18.0%
Earnings Growth
CARS
-53.6%
GOOG
31.1%

Financial Health

Debt/Equity
CARS
0.99
GOOG
0.16
Current Ratio
CARS
1.87
GOOG
2.0
Quick Ratio
CARS
1.67
GOOG
1.85

Dividends

Dividend Yield
CARS
--
GOOG
0.25%
Payout Ratio
CARS
0.0%
GOOG
7.68%

AI Verdict

CARS BEARISH

CARS exhibits a stable financial foundation with a Piotroski F-Score of 6/9, but this is overshadowed by severe fundamental deterioration. The stock is trading at a significant premium to both its Graham Number ($7.62) and Intrinsic Value ($2.24), while experiencing a collapse in earnings growth (-53.60% YoY). Despite a low forward P/E of 4.85, the company has failed to beat earnings estimates in the last four consecutive quarters, suggesting that analyst expectations are disconnected from operational reality.

Strengths
Stable financial health indicated by Piotroski F-Score of 6/9
Strong liquidity position with a Current Ratio of 1.87 and Quick Ratio of 1.67
High Gross Margins (66.72%) providing a buffer for operating costs
Risks
Severe earnings contraction with YoY growth at -53.60%
Consistent failure to meet earnings expectations (0/4 beats in last 4 quarters)
Stagnant revenue growth (1.90% YoY) indicating a lack of market expansion
GOOG BULLISH

Alphabet exhibits a stable financial health profile with a Piotroski F-Score of 4/9 and an exceptionally low Debt/Equity ratio of 0.16. While the current price of $337.73 trades at a premium to the Graham Number ($91.41) and slightly above the growth-based intrinsic value ($318.9), this is justified by dominant profit margins (32.81%) and robust earnings growth of 31.1%. Despite bearish insider activity and weak short-term technical trends, the fundamental growth trajectory and strong analyst consensus support a bullish long-term outlook.

Strengths
Exceptional profitability with a 32.81% profit margin and 35.71% ROE
Very strong balance sheet with low leverage (Debt/Equity 0.16) and healthy liquidity (Current Ratio 2.00)
Strong earnings momentum with 31.1% YoY growth and a consistent track record of beating estimates
Risks
Significant divergence between current price and defensive fair value (Graham Number)
Bearish insider sentiment with consistent selling and zero buy transactions in 6 months
High PEG ratio (2.29) suggesting the stock may be overvalued relative to its growth rate

Compare Another Pair

CARS vs GOOG: Head-to-Head Comparison

This page compares Cars.com Inc. (CARS) and Alphabet Inc. (GOOG) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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