Which Is a Better Investment, CarGurus Inc or LegalZoom.com Inc Stock?

By Jenna Brashear
September 03, 2026
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Sifting through countless of stocks in the Professional Services industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in LegalZoom.com, Inc., CarGurus or Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how LegalZoom.com, Inc., CarGurus and Inc. compare based on key financial metrics to determine which better meets your investment needs.

About LegalZoom.com, Inc., CarGurus and Inc.

LegalZoom.com, Inc. together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company’s platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; and intellectual property products consisting of trademark and patent applications, and copyright registrations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and legal forms. In addition, the company offers subscriptions services, including registered agent, compliance, small business attorney advice through our legal plans, compliance concierge, compliance and legal concierge, reinstatement concierge and compliance concierge, business concierge, business and legal concierge, consumer attorney advice through legal plans, business licenses, virtual mail and check deposit services, estate planning bundle, bookkeeping, e-signature, and trademark monitoring. The company was incorporated in 1999 and is headquartered in Mountain View, California.

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 products. It also offers Digital Deal which allows consumers the option to start their vehicle purchase process online for eligible listings; Dealership Mode which provides consumers with on-the-lot support during visits to participating dealers through the CarGurus app; Sell My Car – Top Dealer Offers which allows dealers to make tailored trade-in offers; and IMV Scan enables dealers to scan a VIN using their smartphone to access IMV data; and PriceVantage, an advanced pricing software powered by machine learning that leverages real-time consumer demand. In addition, the company provides auto manufacturers and others advertiser products, such as brand reinforcement, category sponsorship, automobile segment exclusivity, and consumer segment exposure; Autolist, an online automotive marketplace through mobile applications and a website; and PistonHeads which is an automotive marketplace, auction platform, and editorial site for automotive enthusiasts. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Boston, Massachusetts.

Latest Professional Services and LegalZoom.com, Inc., CarGurus, Inc. Stock News

As of September 2, 2026, LegalZoom.com, Inc. had a $1.1 billion market capitalization, compared to the Professional Services median of $1.1 million. LegalZoom.com, Inc.’s stock is down 35.5% in 2026, up 5.8% in the previous five trading days and down 39.91% in the past year.

Currently, LegalZoom.com, Inc.’s price-earnings ratio is 72.4. LegalZoom.com, Inc.’s trailing 12-month revenue is $792.5 million with a 2.1% net profit margin. Year-over-year quarterly sales growth most recently was 6.6%. Analysts expect adjusted earnings to reach $0.711 per share for the current fiscal year. LegalZoom.com, Inc. does not currently pay a dividend.

As of September 2, 2026, CarGurus, Inc. had a $3.1 billion market cap, putting it in the 60th percentile of all stocks. CarGurus, Inc.’s stock is down 10.7% in 2026, down 5.9% in the previous five trading days and down 0.43% in the past year.

Currently, CarGurus, Inc.’s price-earnings ratio is 22.8. CarGurus, Inc.’s trailing 12-month revenue is $967.3 million with a 18.2% net profit margin. Year-over-year quarterly sales growth most recently was 13.1%. Analysts expect adjusted earnings to reach $2.624 per share for the current fiscal year. CarGurus, Inc. does not currently pay a dividend.

How We Compare LegalZoom.com, Inc., CarGurus and Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at LegalZoom.com, Inc., CarGurus and Inc.’s stock grades to see how they measure up against one another.

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LegalZoom.com, Inc., CarGurus and Inc. Stock Value Grades

Company Ticker Value
LegalZoom.com, Inc. LZ D
CarGurus, Inc. CARG C

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

LegalZoom.com, Inc. has a Value Score of 37, which is Expensive. CarGurus, Inc. has a Value Score of 47, which is Average.

The Value Stock Winner: No Clear Winner

Neither LegalZoom.com, Inc., CarGurus or Inc. has a high enough value grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolio. It’s important to look at a wide range of financial metrics in order to determine if LegalZoom.com, Inc., CarGurus or Inc. is the better investment when it comes to value.

LegalZoom.com, Inc., CarGurus and Inc.’s Quality Grades

Company Ticker Quality
LegalZoom.com, Inc. LZ A
CarGurus, Inc. CARG A

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

LegalZoom.com, Inc. has a Quality Score of 81, which is Very Strong. CarGurus, Inc. has a Quality Score of 99, which is Very Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both LegalZoom.com, Inc., CarGurus and Inc. have a grade of A. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

LegalZoom.com, Inc., CarGurus and Inc.’s Estimate Revisions Grades

Company Ticker Earnings Estimate
LegalZoom.com, Inc. LZ D
CarGurus, Inc. CARG B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

LegalZoom.com, Inc. has a Earnings Estimate Score of 29, which is Negative. CarGurus, Inc. has a Earnings Estimate Score of 64, which is Positive.

The Earnings Estimate Revisions Grade Winner: CarGurus, Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, CarGurus, Inc. has a better Earnings Estimate Revisions Grade than LegalZoom.com, Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, CarGurus, Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other LegalZoom.com, Inc., CarGurus and Inc. Grades

In addition to Quality, Estimate Revisions and Value, A+ Investor also provides grades for Growth and Momentum.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether LegalZoom.com, Inc., CarGurus and Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, LegalZoom.com, Inc., CarGurus or Inc. Stock?

Overall, LegalZoom.com, Inc. stock has a Value Score of 37, Estimate Revisions Score of 29 and Quality Score of 81.

CarGurus, Inc. stock has a Value Score of 47, Estimate Revisions Score of 64 and Quality Score of 99.

Comparing LegalZoom.com, Inc., CarGurus and Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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