CarMax, Inc. (KMX) vs Lithia Motors, Inc. (LAD)

CarMax, Inc. and Lithia Motors, Inc. are both Auto & Truck Dealerships companies. CarMax, Inc. and Lithia Motors, Inc. are of similar size ($7.5B and $6.8B). Lithia Motors, Inc. trades at the lower P/E: 9.1× against 25.8×. CarMax, Inc. grew revenue faster over the last twelve months: 4.79% against 1.59%. Lithia Motors, Inc. has the higher net margin (2.06% vs 1.06%) and the higher return on invested capital (6.05% vs 1.58%). Across the 21 metrics below, Lithia Motors, Inc. leads on 17 and CarMax, Inc. on 4.

Valuation

Metric KMX LAD Auto & Truck Dealerships median
P/E 25.76 9.10 15.49
P/S 0.27 0.18 0.24
P/B 1.19 1.04 1.45
Price to free cash flow 6.54 n/m 10.17
EV/EBITDA 21.84 8.15 8.57
EV/Sales 0.85 0.43 0.47
Earnings yield 3.88% 10.99% 2.96%
Free cash flow yield 15.30% (5.81%) 2.14%

Profitability

Metric KMX LAD Auto & Truck Dealerships median
Gross margin 10.31% 15.14% 18.39%
Operating margin 2.05% 4.05% 3.69%
Net margin 1.06% 2.06% 1.20%
Free cash flow margin 4.15% (1.05%) 0.86%
Return on equity 4.68% 11.74% 11.73%
Return on assets 1.10% 3.07% 0.75%
Return on invested capital 1.58% 6.05% 6.38%

Growth

Metric KMX LAD Auto & Truck Dealerships median
Revenue growth (TTM) 4.79% 1.59% 0.29%
EPS growth (last fiscal year) (47.66%) 9.01% (0.89%)
Revenue growth, 5-year CAGR 6.43% 23.45% 9.44%
Net income growth, 5-year CAGR (19.83%) 11.75% 0.00%

Health

Metric KMX LAD Auto & Truck Dealerships median
Debt to equity 2.67 1.46 0.61
Current ratio 2.33 1.00 1.16
Net debt to EBITDA 16.96 4.71 1.24

Dividend

Metric KMX LAD Auto & Truck Dealerships median
Dividend yield — 0.99% 1.02%
Payout ratio — 0.09 0.24

Size

Metric KMX LAD Auto & Truck Dealerships median
Market cap 7.47b 6.84b 2.03b

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