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: 15.5× against 25.8×. CarMax, Inc. grew revenue faster over the last twelve months: 4.79% against 1.38%. Penske Automotive Group, Inc. has the higher net margin (2.77% vs 1.06%) and the higher return on invested capital (9.11% 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 25.76 15.49 15.49
P/S 0.27 0.43 0.24
P/B 1.19 2.34 1.45
Price to free cash flow 6.54 26.34 10.17
EV/EBITDA 21.84 11.73 8.57
EV/Sales 0.85 0.50 0.47
Earnings yield 3.88% 6.46% 2.96%
Free cash flow yield 15.30% 3.80% 2.14%

Profitability

Metric KMX PAG Auto & Truck Dealerships median
Gross margin 10.31% 16.04% 18.39%
Operating margin 2.05% 3.70% 3.69%
Net margin 1.06% 2.77% 1.20%
Free cash flow margin 4.15% 1.63% 0.86%
Return on equity 4.68% 15.44% 11.73%
Return on assets 1.10% 5.08% 0.75%
Return on invested capital 1.58% 9.11% 6.38%

Growth

Metric KMX PAG Auto & Truck Dealerships median
Revenue growth (TTM) 4.79% 1.38% 0.29%
EPS growth (last fiscal year) (47.66%) (2.48%) (0.89%)
Revenue growth, 5-year CAGR 6.43% 9.24% 9.44%
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 0.40 0.61
Current ratio 2.33 0.98 1.16
Net debt to EBITDA 16.96 1.45 1.24

Dividend

Metric KMX PAG Auto & Truck Dealerships median
Dividend yield — 2.66% 1.02%
Payout ratio — 0.41 0.24

Size

Metric KMX PAG Auto & Truck Dealerships median
Market cap 7.47b 13.93b 2.03b

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