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 $79.5B against $7.5B — 10.6× the size. CarMax, Inc. trades at the lower P/E: 25.8× against 27.2×. Carvana Co. grew revenue faster over the last twelve months: 50.3% against 4.79%. Carvana Co. has the higher net margin (6.21% vs 1.06%) and the higher return on invested capital (19.5% 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 27.20 25.76 15.49
P/S 1.90 0.27 0.24
P/B 9.22 1.19 1.45
Price to free cash flow 46.77 6.54 10.17
EV/EBITDA 20.17 21.84 8.57
EV/Sales 1.97 0.85 0.47
Earnings yield 3.68% 3.88% 2.96%
Free cash flow yield 2.14% 15.30% 2.14%

Profitability

Metric CVNA KMX Auto & Truck Dealerships median
Gross margin 19.04% 10.31% 18.39%
Operating margin 8.74% 2.05% 3.69%
Net margin 6.21% 1.06% 1.20%
Free cash flow margin 4.06% 4.15% 0.86%
Return on equity 39.66% 4.68% 11.73%
Return on assets 13.62% 1.10% 0.75%
Return on invested capital 19.45% 1.58% 6.38%

Growth

Metric CVNA KMX Auto & Truck Dealerships median
Revenue growth (TTM) 50.28% 4.79% 0.29%
EPS growth (last fiscal year) 431.45% (47.66%) (0.89%)
Revenue growth, 5-year CAGR 29.47% 6.43% 9.44%
Net income growth, 5-year CAGR 0.00% (19.83%) 0.00%

Health

Metric CVNA KMX Auto & Truck Dealerships median
Debt to equity 0.92 2.67 0.61
Current ratio 4.05 2.33 1.16
Net debt to EBITDA 1.24 16.96 1.24

Dividend

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

Size

Metric CVNA KMX Auto & Truck Dealerships median
Market cap 79.52b 7.47b 2.03b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack