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 $13.7B against $8.0B — 1.7× the size. Penske Automotive Group, Inc. trades at the lower P/E: 15.4× against 37.4×. Penske Automotive Group, Inc. grew revenue faster over the last twelve months: −1.55% against −1.64%. Penske Automotive Group, Inc. has the higher net margin (2.81% vs 0.84%) and the higher return on invested capital (9.18% vs 1.31%). Across the 22 metrics below, Penske Automotive Group, Inc. leads on 16 and CarMax, Inc. on 6.

Valuation

Metric KMX PAG Auto & Truck Dealerships median
P/E 37.39 15.44 16.07
P/S 0.31 0.43 0.43
P/B 1.33 2.36 2.36
Price to free cash flow 8.16 22.10 10.48
EV/EBITDA 25.43 11.64 8.50
EV/Sales 0.95 0.50 0.89
Earnings yield 2.67% 6.48% 2.72%
Free cash flow yield 12.26% 4.53% 2.83%

Profitability

Metric KMX PAG Auto & Truck Dealerships median
Gross margin 10.50% 16.15% 19.56%
Operating margin 1.83% 3.77% 3.73%
Net margin 0.84% 2.81% 1.07%
Free cash flow margin 3.78% 1.94% 2.34%
Return on equity 3.59% 15.80% 10.04%
Return on assets 0.82% 5.05% 0.61%
Return on invested capital 1.31% 9.18% 6.85%

Growth

Metric KMX PAG Auto & Truck Dealerships median
Revenue growth (TTM) (1.64%) (1.55%) 1.46%
EPS growth (last fiscal year) (47.66%) 2.84% —
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 2.87 0.43 0.55
Current ratio 2.70 0.98 1.15
Net debt to EBITDA 16.96 1.45 1.34

Dividend

Metric KMX PAG Auto & Truck Dealerships median
Dividend yield — 1.66% 1.37%
Payout ratio 0.00 0.13 0.00

Size

Metric KMX PAG Auto & Truck Dealerships median
Market cap 8.00b 13.66b 2.10b

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