CarGurus, Inc. CARG

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
77/100
Strong

About CarGurus, Inc.

CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. The company offers dealer subscription fees, advertising from auto manufacturers and other brand advertisers, and partnerships with financing services companies. It provides an online automotive marketplace that connects large audience of car shoppers with extensive network of dealers, anchoring integrated suite of … Full CARG analysis →

Competitive advantage assessment

Key strengths

  • Strong Interest Coverage & Conservative Leverage Debt serviceability is strong (score 0.91), with robust interest coverage.
  • Consistent Cash Generation Cash generation is strong and consistent (score 1.00).

Key risks

  • Revenue Volatility Signals Weak Stickiness Revenue volatility is high (stability score 0.32), suggesting weak customer stickiness.
  • Volatile Margins Suggest Cyclicality Margin volatility is high (stability score 0.39), suggesting cyclical exposure or competitive pressure.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

Upgrade to unlock the signals and evidence behind each defense.

Premium access

Unlock full defense analysis

Get key signals, strengths, and risks for every moat dimension.

Upgrade to Premium Unlock all moat defenses and evidence.

Pricing Power

Moderate
72

Where CARG ranks in Auto & Truck Dealerships

CarGurus, Inc. ranks #1 of 31 scored companies in Auto & Truck Dealerships by moat score — the top 3%. That makes it the widest moat in the group.

Moat scores for companies ranked near CARG in Auto & Truck Dealerships
# Company Moat score Rating
1 CarGurus, Inc. CARG 77/100 Strong
2 Rush Enterprises, Inc. RUSHA 77/100 Strong
3 Mister Car Wash, Inc. MCW 75/100 Moderate
4 Rush Enterprises, Inc. RUSHB 75/100 Moderate
5 Cars.com Inc. CARS 71/100 Moderate
6 OPENLANE, Inc. KAR 70/100 Moderate
7 Valvoline Inc. VVV 69/100 Moderate
8 Carvana Co. CVNA 65/100 Moderate
9 Penske Automotive Group, Inc. PAG 65/100 Moderate

See every General Corporate company ranked by moat score →

How CARG scores on the Corporate Default defenses

Pricing Power

Score 72 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 58 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 72 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 80 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 91 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 91 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding CARG's moat

What is CarGurus, Inc.'s moat score?

CarGurus, Inc. (CARG) scores 77 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as strong. It ranks #1 of 31 scored companies in Auto & Truck Dealerships, the top 3%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 30 companies in Auto & Truck Dealerships. Its strongest defense is Resilience (91/100) and its weakest is Cost Advantage (58/100).

How does CarGurus, Inc. compare with other Auto & Truck Dealerships companies?

CarGurus, Inc. ranks #1 of 31 scored companies in Auto & Truck Dealerships by moat score. That is the widest moat in Auto & Truck Dealerships. The companies ranked closest are Rush Enterprises, Inc. (RUSHA) at 76 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 30 companies in Auto & Truck Dealerships. The defenses are then weighted to produce the overall score out of 100.

Why is CarGurus, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for CarGurus, Inc.?

The Corporate Default template measures 6 defenses, and CARG scores: Pricing Power (72), Cost Advantage (58), Customer Stickiness (72), Capital Efficiency (80), Resilience (91), Scale & Market Position (91). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

Send Feedback
Please select a category.
0/1000