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

CarMax, Inc. and Lithia Motors, Inc. are both Auto & Truck Dealerships companies. CarMax, Inc. is the larger, with a market value of $8.0B against $6.8B — 1.2× the size. Lithia Motors, Inc. trades at the lower P/E: 10.5× against 37.4×. Lithia Motors, Inc. grew revenue faster over the last twelve months: 2.10% against −1.64%. Lithia Motors, Inc. has the higher net margin (1.88% vs 0.84%) and the higher return on invested capital (6.20% vs 1.31%). Across the 21 metrics below, Lithia Motors, Inc. leads on 18 and CarMax, Inc. on 3.

Valuation

Metric KMX LAD Auto & Truck Dealerships median
P/E 37.39 10.49 16.07
P/S 0.31 0.19 0.43
P/B 1.33 1.11 2.36
Price to free cash flow 8.16 n/m 10.48
EV/EBITDA 25.43 8.22 8.50
EV/Sales 0.95 0.43 0.89
Earnings yield 2.67% 9.53% 2.72%
Free cash flow yield 12.26% (6.74%) 2.83%

Profitability

Metric KMX LAD Auto & Truck Dealerships median
Gross margin 10.50% 15.17% 19.56%
Operating margin 1.83% 4.08% 3.73%
Net margin 0.84% 1.88% 1.07%
Free cash flow margin 3.78% (1.26%) 2.34%
Return on equity 3.59% 10.63% 10.04%
Return on assets 0.82% 2.83% 0.61%
Return on invested capital 1.31% 6.20% 6.85%

Growth

Metric KMX LAD Auto & Truck Dealerships median
Revenue growth (TTM) (1.64%) 2.10% 1.46%
EPS growth (last fiscal year) (47.66%) 9.01% —
Revenue growth, 5-year CAGR 6.43% 23.45% 10.46%
Net income growth, 5-year CAGR (19.83%) 11.75% 0.00%

Health

Metric KMX LAD Auto & Truck Dealerships median
Debt to equity 2.87 1.48 0.55
Current ratio 2.70 1.00 1.15
Net debt to EBITDA 16.96 4.71 1.34

Dividend

Metric KMX LAD Auto & Truck Dealerships median
Dividend yield — 0.66% 1.37%
Payout ratio 0.00 0.04 0.00

Size

Metric KMX LAD Auto & Truck Dealerships median
Market cap 8.00b 6.81b 2.10b

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