CarMax, Inc. (KMX) vs Rush Enterprises, Inc. (RUSHA)

CarMax, Inc. and Rush Enterprises, Inc. are both Auto & Truck Dealerships companies. CarMax, Inc. is the larger, with a market value of $7.5B against $5.7B — 1.3× the size. Rush Enterprises, Inc. trades at the lower P/E: 19.1× against 25.8×. CarMax, Inc. grew revenue faster over the last twelve months: 4.79% against −2.65%. Rush Enterprises, Inc. has the higher net margin (3.70% vs 1.06%) and the higher return on invested capital (9.32% vs 1.58%). Across the 22 metrics below, Rush Enterprises, Inc. leads on 15 and CarMax, Inc. on 7.

Valuation

Metric KMX RUSHA Auto & Truck Dealerships median
P/E 25.76 19.09 15.49
P/S 0.27 0.71 0.24
P/B 1.19 2.19 1.45
Price to free cash flow 6.54 15.16 10.17
EV/EBITDA 21.84 8.63 8.57
EV/Sales 0.85 0.73 0.47
Earnings yield 3.88% 5.24% 2.96%
Free cash flow yield 15.30% 6.60% 2.14%

Profitability

Metric KMX RUSHA Auto & Truck Dealerships median
Gross margin 10.31% 19.29% 18.39%
Operating margin 2.05% 5.07% 3.69%
Net margin 1.06% 3.70% 1.20%
Free cash flow margin 4.15% 0.00% 0.86%
Return on equity 4.68% 11.88% 11.73%
Return on assets 1.10% 5.95% 0.75%
Return on invested capital 1.58% 9.32% 6.38%

Growth

Metric KMX RUSHA Auto & Truck Dealerships median
Revenue growth (TTM) 4.79% (2.65%) 0.29%
EPS growth (last fiscal year) (47.66%) (12.10%) (0.89%)
Revenue growth, 5-year CAGR 6.43% 9.44% 9.44%
Net income growth, 5-year CAGR (19.83%) 18.08% 0.00%

Health

Metric KMX RUSHA Auto & Truck Dealerships median
Debt to equity 2.67 0.15 0.61
Current ratio 2.33 1.44 1.16
Net debt to EBITDA 16.96 0.23 1.24

Dividend

Metric KMX RUSHA Auto & Truck Dealerships median
Dividend yield — 1.15% 1.02%
Payout ratio — 0.22 0.24

Size

Metric KMX RUSHA Auto & Truck Dealerships median
Market cap 7.47b 5.68b 2.03b

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