COMPARE · Reviewed July 2, 2026
CARG vs FIVE
Verdict: Side-by-side breakdown using the Bull Rankings model. CARG scored 82.9, FIVE scored 79.1 — CARG ahead by 3.8000000000000114.
CARG
CarGurus, Inc.
82.9
$36.24
Score gap
3.8000000000000114
CARG leads
FIVE
Five Below, Inc.
79.1
$182.43
The companies
CARGCarGurus, Inc.
Why now
Auto & Truck Dealerships · market cap $3.3b. 8% off the 52-week high of $39.42. Revenue growing +14%, comfortably above the S&P median. 13 sell-side analysts rate this a Buy with a mean 1-yr target of $37.38 (implying +3% upside).
Moat
Net margin 16% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 63% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 196% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Mature compounder — the risk is paying up for quality at a moment when growth is decelerating. Watch for sequential revenue + margin trends; the inflection from "compounder" to "ex-compounder" is hard to spot until the multiple already started compressing.
FIVEFive Below, Inc.
Why now
Specialty Retail · market cap $10.1b. Down 28% from 52-week high of $251.63 — deep drawdown territory. Revenue growing +23%, comfortably above the S&P median. PEG 0.98 — paying under fair value for the growth rate. 21 sell-side analysts rate this a Buy with a mean 1-yr target of $260.81 (implying +43% upside).
Moat
ROE 19% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 115% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
Value re-rating depends on a catalyst. Without one — analyst day, divestiture, margin recovery, capital return — the stock can stay cheap on these multiples for years.
Base grades (each contributes ~14.3% of base composite)
| CARG | Component | FIVE |
|---|---|---|
| C65 | FCF | C+70 |
| B+85 | Rev | A-90 |
| B80 | D/E | B80 |
| B80 | P/E or P/S | B80 |
| B+85 | PEG | B+85 |
| Supplemental signals · feed the score, not on the row card | ||
| A-90 | FCF Yield | B+85 |
| A95 | ROE | B+85 |
| 83.4 | Base composite | 82.3 |
Adjustments (signed deltas applied on top of base)
CARG
compounder synergy (FCF yield ≥5% + ROE ≥15% + D/E <1)+4
analyst consensus tilt buy (60%)+1
forward P/E cheaper (19 → 12)+1
DCF cross-check (avg upside 55%)+1
Total+7
FIVE
compounder synergy (FCF yield ≥5% + ROE ≥15% + D/E <1)+4
GARP sweet spot (PEG <1, positive FCF)+1
analyst consensus tilt buy (60%)+1
Total+6
DCF cross-check (per-share value vs. live price)
| CARG upside | Horizon | FIVE upside |
|---|---|---|
| +28% | 1Y | -21% |
| +50% | 5Y | -17% |
| +89% | 10Y | -10% |
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.