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 $6.0B — 1.2× the size. AutoNation, Inc. trades at the lower P/E: 9.0× against 25.8×. CarMax, Inc. grew revenue faster over the last twelve months: 4.79% against −1.77%. AutoNation, Inc. has the higher net margin (2.63% vs 1.06%) and the higher return on invested capital (8.69% 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 9.00 25.76 15.49
P/S 0.23 0.27 0.24
P/B 2.73 1.19 1.45
Price to free cash flow 269.88 6.54 10.17
EV/EBITDA 8.52 21.84 8.57
EV/Sales 0.47 0.85 0.47
Earnings yield 11.11% 3.88% 2.96%
Free cash flow yield 0.37% 15.30% 2.14%

Profitability

Metric AN KMX Auto & Truck Dealerships median
Gross margin 17.74% 10.31% 18.39%
Operating margin 4.60% 2.05% 3.69%
Net margin 2.63% 1.06% 1.20%
Free cash flow margin 0.08% 4.15% 0.86%
Return on equity 30.22% 4.68% 11.73%
Return on assets 4.84% 1.10% 0.75%
Return on invested capital 8.69% 1.58% 6.38%

Growth

Metric AN KMX Auto & Truck Dealerships median
Revenue growth (TTM) (1.77%) 4.79% 0.29%
EPS growth (last fiscal year) 0.71% (47.66%) (0.89%)
Revenue growth, 5-year CAGR 6.27% 6.43% 9.44%
Net income growth, 5-year CAGR 11.21% (19.83%) 0.00%

Health

Metric AN KMX Auto & Truck Dealerships median
Debt to equity 3.03 2.67 0.61
Current ratio 0.77 2.33 1.16
Net debt to EBITDA 3.70 16.96 1.24

Dividend

Metric AN KMX Auto & Truck Dealerships median
Dividend yield — — 1.02%
Payout ratio — — 0.24

Size

Metric AN KMX Auto & Truck Dealerships median
Market cap 6.02b 7.47b 2.03b

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