CART vs SE

Internet Retail · market cap $10.8b. 14% off the 52-week high of $53.50. Revenue growing +12%, comfortably above the S&P median. 27 sell-side analysts rate this a Buy with a mean 1-yr target of $51.44 (implying +12% upside).

Net margin 13% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 20% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. FCF converts 182% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.

E-commerce competition — Amazon, Walmart, Shein, and Temu have each forced the rest of the category to compete on price, fulfillment speed, or assortment; sustaining margins requires one of those being structurally defended.

Internet Retail · market cap $68.1b. Down 44% from 52-week high of $199.30 — deep drawdown territory. Revenue growing +33% — in hypergrowth territory. 28 sell-side analysts rate this a Strong Buy with a mean 1-yr target of $142.26 (implying +27% upside).

ROE 13% meets the long-run market sustainable threshold — solid but not differentiated; the durability comes from elsewhere. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong. $68.1b market cap gives the company enough scale to absorb fixed costs that subscale competitors can't, without yet being so large that growth has to come from acquisition.

Down 44% from the 52-week high — the market is pricing in something the screen can't see; verify the bear case before sizing up. Beta 1.51 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return. Trailing P/E 44x sits well above the S&P median (~20x) — multiple compression is a real risk if revenue growth decelerates.