Asbury Automotive Group, Inc. (ABG) vs CarMax, Inc. (KMX)

Asbury Automotive Group, Inc. and CarMax, Inc. are both Auto & Truck Dealerships companies. CarMax, Inc. is the larger, with a market value of $7.5B against $3.1B — 2.4× the size. Asbury Automotive Group, Inc. trades at the lower P/E: 6.3× against 26.0×. CarMax, Inc. grew revenue faster over the last twelve months: 4.79% against 4.13%. Asbury Automotive Group, Inc. has the higher net margin (2.83% vs 1.06%) and the higher return on invested capital (6.66% vs 1.58%). Across the 22 metrics below, Asbury Automotive Group, Inc. leads on 19 and CarMax, Inc. on 3.

Valuation

Metric ABG KMX Auto & Truck Dealerships median
P/E 6.35 25.96 15.92
P/S 0.17 0.27 0.27
P/B 0.79 1.20 2.00
Price to free cash flow 6.20 6.60 10.69
EV/EBITDA 6.96 21.90 8.59
EV/Sales 0.36 0.85 0.68
Earnings yield 15.76% 3.85% 3.16%
Free cash flow yield 16.13% 15.15% 2.80%

Profitability

Metric ABG KMX Auto & Truck Dealerships median
Gross margin 17.11% 10.31% 19.56%
Operating margin 4.35% 2.05% 3.73%
Net margin 2.83% 1.06% 1.18%
Free cash flow margin 2.79% 4.15% 2.34%
Return on equity 13.23% 4.68% 10.04%
Return on assets 4.73% 1.10% 0.75%
Return on invested capital 6.66% 1.58% 6.85%

Growth

Metric ABG KMX Auto & Truck Dealerships median
Revenue growth (TTM) 4.13% 4.79% 3.12%
EPS growth (last fiscal year) 16.88% (47.66%) 2.35%
Revenue growth, 5-year CAGR 20.34% 6.43% 10.46%
Net income growth, 5-year CAGR 14.10% (19.83%) 0.00%

Health

Metric ABG KMX Auto & Truck Dealerships median
Debt to equity 0.88 2.67 0.55
Current ratio 0.91 2.33 1.15
Net debt to EBITDA 3.53 16.96 1.34

Dividend

Metric ABG KMX Auto & Truck Dealerships median
Dividend yield — — 1.03%
Payout ratio — — 0.24

Size

Metric ABG KMX Auto & Truck Dealerships median
Market cap 3.05b 7.47b 2.14b

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