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 $7.5B against $4.5B — 1.6× the size. OPENLANE, Inc. has negative trailing earnings, so its P/E is not meaningful; CarMax, Inc. trades at 26.0×. OPENLANE, Inc. grew revenue faster over the last twelve months: 11.8% against 4.79%. CarMax, Inc. has the higher net margin (1.06% vs −3.08%) and the lower return on invested capital (1.58% 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 25.96 n/m 15.92
P/S 0.27 2.05 0.27
P/B 1.20 2.70 2.00
Price to free cash flow 6.60 12.00 10.69
EV/EBITDA 21.90 10.25 8.59
EV/Sales 0.85 2.20 0.68
Earnings yield 3.85% (2.24%) 3.16%
Free cash flow yield 15.15% 8.33% 2.80%

Profitability

Metric KMX OPLN Auto & Truck Dealerships median
Gross margin 10.31% 45.85% 19.56%
Operating margin 2.05% 16.61% 3.73%
Net margin 1.06% (3.08%) 1.18%
Free cash flow margin 4.15% 17.05% 2.34%
Return on equity 4.68% (4.29%) 10.04%
Return on assets 1.10% (1.33%) 0.75%
Return on invested capital 1.58% 7.90% 6.85%

Growth

Metric KMX OPLN Auto & Truck Dealerships median
Revenue growth (TTM) 4.79% 11.77% 3.12%
EPS growth (last fiscal year) (47.66%) (313.33%) 2.35%
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 2.67 0.34 0.55
Current ratio 2.33 1.17 1.15
Net debt to EBITDA 16.96 0.86 1.34

Dividend

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

Size

Metric KMX OPLN Auto & Truck Dealerships median
Market cap 7.47b 4.54b 2.14b

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