Carvana Co. (CVNA) vs CarMax, Inc. (KMX)

Carvana Co. and CarMax, Inc. are both Auto & Truck Dealerships companies. Carvana Co. is the larger, with a market value of $66.7B against $7.5B — 8.9× the size. CarMax, Inc. trades at the lower P/E: 26.0× against 26.5×. Carvana Co. grew revenue faster over the last twelve months: 54.0% against 4.79%. Carvana Co. has the higher net margin (6.26% vs 1.06%) and the higher return on invested capital (18.3% vs 1.58%). Across the 22 metrics below, Carvana Co. leads on 14 and CarMax, Inc. on 8.

Valuation

Metric CVNA KMX Auto & Truck Dealerships median
P/E 26.54 25.96 15.92
P/S 1.68 0.27 0.27
P/B 8.18 1.20 2.00
Price to free cash flow 45.09 6.60 10.69
EV/EBITDA 17.64 21.90 8.59
EV/Sales 1.78 0.85 0.68
Earnings yield 3.77% 3.85% 3.16%
Free cash flow yield 2.22% 15.15% 2.80%

Profitability

Metric CVNA KMX Auto & Truck Dealerships median
Gross margin 19.37% 10.31% 19.56%
Operating margin 8.93% 2.05% 3.73%
Net margin 6.26% 1.06% 1.18%
Free cash flow margin 3.72% 4.15% 2.34%
Return on equity 43.23% 4.68% 10.04%
Return on assets 13.11% 1.10% 0.75%
Return on invested capital 18.32% 1.58% 6.85%

Growth

Metric CVNA KMX Auto & Truck Dealerships median
Revenue growth (TTM) 53.98% 4.79% 3.12%
EPS growth (last fiscal year) 431.45% (47.66%) 2.35%
Revenue growth, 5-year CAGR 29.47% 6.43% 10.46%
Net income growth, 5-year CAGR 0.00% (19.83%) 0.00%

Health

Metric CVNA KMX Auto & Truck Dealerships median
Debt to equity 1.02 2.67 0.55
Current ratio 3.93 2.33 1.15
Net debt to EBITDA 1.24 16.96 1.34

Dividend

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

Size

Metric CVNA KMX Auto & Truck Dealerships median
Market cap 66.71b 7.47b 2.14b

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