AutoNation, Inc. (AN) vs CarMax, Inc. (KMX)

AutoNation, Inc. and CarMax, Inc. are both Auto & Truck Dealerships companies. CarMax, Inc. is the larger, with a market value of $7.5B against $5.3B — 1.4× the size. AutoNation, Inc. trades at the lower P/E: 7.5× against 26.0×. CarMax, Inc. grew revenue faster over the last twelve months: 4.79% against −0.06%. AutoNation, Inc. has the higher net margin (2.82% vs 1.06%) and the higher return on invested capital (9.19% vs 1.58%). Across the 22 metrics below, AutoNation, Inc. leads on 14 and CarMax, Inc. on 8.

Valuation

Metric AN KMX Auto & Truck Dealerships median
P/E 7.49 25.96 15.92
P/S 0.20 0.27 0.27
P/B 2.40 1.20 2.00
Price to free cash flow 447.76 6.60 10.69
EV/EBITDA 7.67 21.90 8.59
EV/Sales 0.44 0.85 0.68
Earnings yield 13.35% 3.85% 3.16%
Free cash flow yield 0.22% 15.15% 2.80%

Profitability

Metric AN KMX Auto & Truck Dealerships median
Gross margin 17.83% 10.31% 19.56%
Operating margin 4.81% 2.05% 3.73%
Net margin 2.82% 1.06% 1.18%
Free cash flow margin 0.04% 4.15% 2.34%
Return on equity 32.77% 4.68% 10.04%
Return on assets 5.33% 1.10% 0.75%
Return on invested capital 9.19% 1.58% 6.85%

Growth

Metric AN KMX Auto & Truck Dealerships median
Revenue growth (TTM) (0.06%) 4.79% 3.12%
EPS growth (last fiscal year) 0.71% (47.66%) 2.35%
Revenue growth, 5-year CAGR 6.27% 6.43% 10.46%
Net income growth, 5-year CAGR 11.21% (19.83%) 0.00%

Health

Metric AN KMX Auto & Truck Dealerships median
Debt to equity 3.00 2.67 0.55
Current ratio 0.78 2.33 1.15
Net debt to EBITDA 3.70 16.96 1.34

Dividend

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

Size

Metric AN KMX Auto & Truck Dealerships median
Market cap 5.28b 7.47b 2.14b

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