COMPARE · Reviewed July 2, 2026
CARG vs KTB
Verdict: Side-by-side breakdown using the Bull Rankings model. CARG scored 82.9, KTB scored 76.3 — CARG ahead by 6.6000000000000085.
CARG
CarGurus, Inc.
82.9
$36.24
Score gap
6.6000000000000085
CARG leads
KTB
Kontoor Brands, Inc.
76.3
$85.00
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.
KTBKontoor Brands, Inc.
Why now
Apparel Manufacturing · market cap $4.7b. Trading near 52-week high of $87.00 — momentum setup, limited technical margin of safety. Revenue growing +21%, comfortably above the S&P median. PEG 0.82 — paying under fair value for the growth rate. 10 sell-side analysts rate this a Buy with a mean 1-yr target of $92.40 (implying +9% upside).
Moat
ROE 45% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which. FCF converts 144% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
D/E 2.06 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trading within 2% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction.
Base grades (each contributes ~14.3% of base composite)
| CARG | Component | KTB |
|---|---|---|
| C65 | FCF | C65 |
| B+85 | Rev | A-90 |
| B80 | D/E | C65 |
| B80 | P/E or P/S | B+85 |
| B+85 | PEG | B+85 |
| Supplemental signals · feed the score, not on the row card | ||
| A-90 | FCF Yield | A-90 |
| A95 | ROE | A95 |
| 83.4 | Base composite | 82.7 |
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
KTB
GARP sweet spot (PEG <1, positive FCF)+1
analyst consensus bullish (70% buy/strong-buy)+2
covered yield (2.5% at 42% payout)+1
DCF cross-check (avg upside 117%)+2
Total+6
DCF cross-check (per-share value vs. live price)
| CARG upside | Horizon | KTB upside |
|---|---|---|
| +28% | 1Y | +58% |
| +50% | 5Y | +102% |
| +89% | 10Y | +190% |
Verdict — model-derived comparison
Generating verdict… typically 5–10 seconds
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