COMPARE · Reviewed July 11, 2026
CARG vs YUMC
Verdict: Side-by-side breakdown using the Bull Rankings model. CARG scored 83.3, YUMC scored 76.2 — CARG leads.
Compare another set
CARG
CarGurus, Inc.
83.3
$34.18 · $3.1B
Score gap
7.1
CARG leads
YUMC
Yum China Holdings, Inc.
76.2
$43.02 · $14.8B
The model, pillar by pillar (0–100 each)
CARG
stronger →← stronger
YUMC
87
Qualityreturns · margins · balance sheet
83
86
Growthrevenue & earnings expansion
73
77
Valuevaluation vs sector peers
73
CARG is stronger on 3 of 3 pillars.
Fundamentals, head-to-head
CARG
YUMC
$293mC
FCF
$931mC+
+14.0%B+
Rev
+6.7%C+
0.79B
D/E
0.38A-
18.2xB
P/E
16.5xB+
1.04B+
PEG
1.07B+
Winner per row is the stronger grade in our model; a tie or a missing value shows no highlight.
Valuation · DCF cross-check
CARG
YUMC
38% below
Price vs fair valuelower is cheaper
12% below
~-2%/yr
Growth the price implies10-yr FCF · lower = less priced in
~5%/yr
+38%
1-yr DCF upside
+1%
+62%
5-yr DCF upside
+14%
+104%
10-yr DCF upside
+35%
The DCF is a cross-check on intrinsic value, separate from the quality-growth score above.
Model signals
CARG
Why this score
- Buying back stock
YUMC
Why this score
- Buying back stock
- Raising its dividend
- Durable high returns
The companies
CARGCarGurus, Inc.
Why now
Auto & Truck Dealerships · market cap $3.1b. 13% off the 52-week high of $39.42. Revenue growing +14%, comfortably above the S&P median. 13 sell-side analysts publish a mean 1-yr target of $37.38 (implying +9% 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.
YUMCYum China Holdings, Inc.
Why now
Restaurants · market cap $14.8b. Down 26% from 52-week high of $58.39 — deep drawdown territory. 21 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $61.34 (implying +43% upside).
Moat
ROE 17% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 98% 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.
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.