CarMax, Inc. (KMX) vs Penske Automotive Group, Inc. (PAG)

CarMax, Inc. and Penske Automotive Group, Inc. are both Auto & Truck Dealerships companies. Penske Automotive Group, Inc. is the larger, with a market value of $13.9B against $7.5B — 1.9× the size. Penske Automotive Group, Inc. trades at the lower P/E: 15.6× against 26.0×. CarMax, Inc. grew revenue faster over the last twelve months: 4.79% against −1.55%. Penske Automotive Group, Inc. has the higher net margin (2.81% vs 1.06%) and the higher return on invested capital (9.18% vs 1.58%). Across the 22 metrics below, Penske Automotive Group, Inc. leads on 15 and CarMax, Inc. on 7.

Valuation

Metric KMX PAG Auto & Truck Dealerships median
P/E 25.96 15.64 15.92
P/S 0.27 0.43 0.27
P/B 1.20 2.39 2.00
Price to free cash flow 6.60 22.39 10.69
EV/EBITDA 21.90 11.77 8.59
EV/Sales 0.85 0.51 0.68
Earnings yield 3.85% 6.39% 3.16%
Free cash flow yield 15.15% 4.47% 2.80%

Profitability

Metric KMX PAG Auto & Truck Dealerships median
Gross margin 10.31% 16.15% 19.56%
Operating margin 2.05% 3.77% 3.73%
Net margin 1.06% 2.81% 1.18%
Free cash flow margin 4.15% 1.94% 2.34%
Return on equity 4.68% 15.80% 10.04%
Return on assets 1.10% 5.05% 0.75%
Return on invested capital 1.58% 9.18% 6.85%

Growth

Metric KMX PAG Auto & Truck Dealerships median
Revenue growth (TTM) 4.79% (1.55%) 3.12%
EPS growth (last fiscal year) (47.66%) 2.84% 2.35%
Revenue growth, 5-year CAGR 6.43% 9.24% 10.46%
Net income growth, 5-year CAGR (19.83%) 11.47% 0.00%

Health

Metric KMX PAG Auto & Truck Dealerships median
Debt to equity 2.67 0.43 0.55
Current ratio 2.33 0.98 1.15
Net debt to EBITDA 16.96 1.45 1.34

Dividend

Metric KMX PAG Auto & Truck Dealerships median
Dividend yield — 2.66% 1.03%
Payout ratio — 0.42 0.24

Size

Metric KMX PAG Auto & Truck Dealerships median
Market cap 7.47b 13.92b 2.14b

Compare with another peer

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