Big Move for UPWK, but Do CARG’s Margins and Growth Give It the Edge?
CarGurus (CARG) offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Upwork (UPWK), suggesting you may be better off investing in CARG
- CARG’s quarterly revenue growth was 4.8%, vs. UPWK’s 3.9%.
- In addition, its Last 12 Months revenue growth came in at 4.8%, ahead of UPWK’s 3.9%.
- CARG leads on profitability over both periods – LTM margin of 20.5% and 3-year average of 11.7%.
UPWK a work marketplace connecting businesses with skilled independent professionals and agencies across sales, marketing, customer service, data science, design, and software development. CARG operates an online automotive marketplace connecting buyers, sellers, and dealers of new and used cars across the US, Canada, the UK, including independent brands Autolist and PistonHeads.
Valuation & Performance Overview
| UPWK | CARG | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 18.7 | 17.9 | CARG |
| Revenue Growth | |||
| Last Quarter | 3.9% | 4.8% | CARG |
| Last 12 Months | 3.9% | 4.8% | CARG |
| Last 3 Year Average | 11.2% | -14.1% | UPWK |
| Operating Margins | |||
| Last 12 Months | 13.7% | 20.5% | CARG |
| Last 3 Year Average | 2.9% | 11.7% | CARG |
| Momentum | |||
| Last 3 Year Return | -13.8% | 77.7% | CARG |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: UPWK Revenue Comparison | CARG Revenue Comparison
See more margin details: UPWK Operating Income Comparison | CARG Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell CARG Stock to see if CarGurus’s edge holds up under the hood or if Upwork still has cards to play (see Buy or Sell UPWK Stock).
That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| UPWK Return | 224% | -1% | -69% | 42% | 10% | -9% | 40% | ||
| CARG Return | -10% | 6% | -58% | 72% | 51% | -7% | -3% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 10% | 100% | <=== | |
| Monthly Win Rates [3] | |||||||||
| UPWK Win Rate | 75% | 58% | 8% | 50% | 42% | 43% | 46% | ||
| CARG Win Rate | 50% | 58% | 33% | 58% | 58% | 43% | 50% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 57% | 62% | <=== | |
| Max Drawdowns [4] | |||||||||
| UPWK Max Drawdown | -49% | -8% | -71% | -27% | -39% | -28% | -37% | ||
| CARG Max Drawdown | -55% | -27% | -65% | 0% | -12% | -31% | -32% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 8/26/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read CARG Dip Buyer Analyses and UPWK Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.