**Carvana Co. (CVNA) and Sonic Automotive, Inc. (SAH) are two prominent automotive retailers in the U.S.** Carvana is leveraging its online platform to revolutionize car buying, recording a 40% year-over-year increase in retail units sold, reaching 187,393 units in Q1 2026. However, it faces challenges with a long-term debt of $4.85 billion and an adjusted EBITDA of $672 million, aiming for a 13.5% margin as it targets sales growth of 39.2% in 2026.
Sonic Automotive, following its acquisition of RFJ Auto Partners in 2021 and other dealerships, reported revenues of $15.2 billion in 2025. Its EchoPark segment saw a 4% revenue increase to $580.5 million in early 2026, with adjusted EBITDA of $18.6 million. Sonic’s long-term debt stands at $1.5 billion, affecting its capital structure with a debt-to-capital ratio of 0.66. For 2026, Sonic anticipates growth of 2.9% in sales and 5.2% in EPS.
**Year-to-date, CVNA shares have fallen by 20.2%, while SAH shares have surged by 62.3%.** Carvana maintains a Zacks Rank of #3 (Hold) due to high debt and investment pressures, whereas Sonic holds a Zacks Rank of #2 (Buy), benefiting from diversification and a positive earnings outlook.
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