Carvana vs AutoZone

Carvana and AutoZone are compared on this page to explore how their business models, financial performance, and market context relate. The aim is to provide a clear, neutral overview that supports understanding of industry context. Educational content, not financial advice.

Carvana and AutoZone are compared on this page to explore how their business models, financial performance, and market context relate. The aim is to provide a clear, neutral overview that supports und...

Comparison Snapshot

Key Financial Metrics

CVNA

Metric

AZO

$103.05B

Market Cap

$62.73B

-6.44%

Potential Profit

15.39%

Buy

Analyst Rating

Buy

Why It's Moving

Carvana surges to new 1-year high as analysts hike targets amid profitability momentum.

BTIG boosted its price target to $535 with a buy rating, while Stephens lifted theirs to $519 and Morgan Stanley reaffirmed overweight, reflecting strong Wall Street optimism.
Revenue jumped 54.5% year-over-year to $5.65B in the last quarter, beating estimates and underscoring robust demand recovery in used vehicles.
Operating margins hit near 10% with LTM income at $2B, highlighting efficiency gains in reconditioning and logistics that bolster scalability.

Sentiment:

🐃Bullish

AutoZone Stock Bounces Back Amid Valuation Debate and Expansion Momentum.

Recent weekly gains reverse some three-month declines, prompting fresh valuation checks on $19.3B annual revenue and $2.5B net income.
International push into Mexico and Brazil targets 100 new stores this fiscal year, unlocking revenue from untapped markets.
New high-tech distribution centers in California and Virginia promise supply chain efficiencies to boost margins.

Sentiment:

🐃Bullish

Carvana surges to new 1-year high as analysts hike targets amid profitability momentum.

BTIG boosted its price target to $535 with a buy rating, while Stephens lifted theirs to $519 and Morgan Stanley reaffirmed overweight, reflecting strong Wall Street optimism.
Revenue jumped 54.5% year-over-year to $5.65B in the last quarter, beating estimates and underscoring robust demand recovery in used vehicles.
Operating margins hit near 10% with LTM income at $2B, highlighting efficiency gains in reconditioning and logistics that bolster scalability.

Sentiment:

🐃Bullish

AutoZone Stock Bounces Back Amid Valuation Debate and Expansion Momentum.

Recent weekly gains reverse some three-month declines, prompting fresh valuation checks on $19.3B annual revenue and $2.5B net income.
International push into Mexico and Brazil targets 100 new stores this fiscal year, unlocking revenue from untapped markets.
New high-tech distribution centers in California and Virginia promise supply chain efficiencies to boost margins.

Sentiment:

🐃Bullish

Investment Analysis

Carvana

CVNA

Pros

Carvana has demonstrated strong revenue growth, achieving a 55% increase to $5.65 billion in Q3 2025, surpassing analyst expectations.
The company improved profitability metrics, with adjusted EBITDA rising 45% and GAAP net income increasing 78% year-over-year.
Carvana benefits from a high current ratio of 4.1, indicating strong liquidity and the ability to meet short-term liabilities efficiently.

Considerations

Carvana’s stock remains highly volatile, with frequent large price swings reflecting market uncertainty about its business outlook.
Despite recent gains, the company holds a relatively aggressive leverage ratio of 4.3, which may pose financial risk amid economic challenges.
The company’s P/E ratio above 75 suggests the stock is priced for high growth, presenting potential valuation risk relative to earnings.

AutoZone

AZO

Pros

AutoZone has a strong market position as one of the leading automotive aftermarket retailers in the United States with a widespread store network.
The company exhibits consistent profitability with solid cash flows, supporting steady dividend payments and reinvestment capabilities.
AutoZone benefits from stable demand driven by the non-cyclical nature of auto parts and maintenance services.

Considerations

AutoZone faces exposure to macroeconomic risks such as changes in consumer spending and vehicle age trends that can impact parts demand.
Increasing competition from e-commerce and other retailers could pressure market share and margins over time.
The company’s large footprint entails significant fixed costs, which may limit flexibility to rapidly adapt to market disruptions.

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