CarMax, Inc. (KMX) vs OPENLANE, Inc. (OPLN)

CarMax, Inc. and OPENLANE, Inc. are both Auto & Truck Dealerships companies. CarMax, Inc. is the larger, with a market value of $8.0B against $4.2B — 1.9× the size. OPENLANE, Inc. has negative trailing earnings, so its P/E is not meaningful; CarMax, Inc. trades at 37.4×. OPENLANE, Inc. grew revenue faster over the last twelve months: 11.8% against −1.64%. CarMax, Inc. has the higher net margin (0.84% vs −3.08%) and the lower return on invested capital (1.31% vs 7.90%). Across the 21 metrics below, CarMax, Inc. leads on 11 and OPENLANE, Inc. on 10.

Valuation

Metric KMX OPLN Auto & Truck Dealerships median
P/E 37.39 n/m 16.07
P/S 0.31 1.92 0.43
P/B 1.33 2.54 2.36
Price to free cash flow 8.16 11.29 10.48
EV/EBITDA 25.43 9.68 8.50
EV/Sales 0.95 2.08 0.89
Earnings yield 2.67% (2.38%) 2.72%
Free cash flow yield 12.26% 8.86% 2.83%

Profitability

Metric KMX OPLN Auto & Truck Dealerships median
Gross margin 10.50% 45.85% 19.56%
Operating margin 1.83% 16.61% 3.73%
Net margin 0.84% (3.08%) 1.07%
Free cash flow margin 3.78% 17.05% 2.34%
Return on equity 3.59% (4.29%) 10.04%
Return on assets 0.82% (1.33%) 0.61%
Return on invested capital 1.31% 7.90% 6.85%

Growth

Metric KMX OPLN Auto & Truck Dealerships median
Revenue growth (TTM) (1.64%) 11.77% 1.46%
EPS growth (last fiscal year) (47.66%) (313.33%) —
Revenue growth, 5-year CAGR 6.43% 7.83% 10.46%
Net income growth, 5-year CAGR (19.83%) 0.00% 0.00%

Health

Metric KMX OPLN Auto & Truck Dealerships median
Debt to equity 2.87 0.34 0.55
Current ratio 2.70 1.17 1.15
Net debt to EBITDA 16.96 0.86 1.34

Dividend

Metric KMX OPLN Auto & Truck Dealerships median
Dividend yield — — 1.37%
Payout ratio 0.00 0.00 0.00

Size

Metric KMX OPLN Auto & Truck Dealerships median
Market cap 8.00b 4.24b 2.10b

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