Investors looking for stocks in the Internet - Commerce sector might want to consider either CarGurus (CARG) or eBay (EBAY). But which of these two stocks is more attractive to value investors?
CarGurus is rated BUY, driven by robust AI adoption, strong cash flows, and an undervalued 10x forward EV/EBITDA multiple. Q2 2026 results exceeded expectations, with 13% revenue growth, 8–11% QARSD gains, and continued international expansion. AI-driven tools like PriceVantage and VINMax are boosting dealer engagement, conversion rates, and operational efficiency.
CarParts.com and CarGurus are each leveraging their own proprietary data to differentiate their platforms from competitors, executives at the two companies said in their Thursday (Aug. 6) earnings reports. CarParts.
CarGurus, Inc. (CARG) Q2 2026 Earnings Call Transcript
Although the revenue and EPS for CarGurus (CARG) give a sense of how its business performed in the quarter ended June 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
CarGurus (CARG) came out with quarterly earnings of $0.66 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.57 per share a year ago.
CarGurus NASDAQ: CARG reported second-quarter 2026 revenue of $251 million, up 13% from a year earlier and above the midpoint of its guidance range, as adoption of add-on dealer products and international growth supported results. Adjusted EBITDA rose 7% to $85 million, representing a 34% margin, while free cash flow totaled $88 million.
CarGurus NASDAQ: CARG highlighted its recent growth, artificial intelligence initiatives and dealer product strategy during a company discussion in which a CarGurus speaker identified as Jason addressed investor questions about valuation, guidance and the evolving online auto-shopping market.
CarGurus, Inc. (CARG) Presents at Bank of America 2026 Global Technology Conference Transcript
CarGurus NASDAQ: CARG Chief Executive Jason Trevisan said the company is accelerating product development across dealer and consumer offerings, with inventory tools, artificial intelligence and international expansion among the key areas of focus.
CarGurus, Inc. (CARG) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
Cars.com is a value trap despite a post-Q1 earnings rebound. The company faced flat revenue trends and weak dealer retention, which stands in stark contrast to larger rival CarGurus. Traffic is declining, while the company is facing flat dealer counts and flat average revenue (compared to mid-teens growth for CarGurus).