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 $8.0B against $5.8B — 1.4× the size. Rush Enterprises, Inc. trades at the lower P/E: 21.2× against 37.4×. CarMax, Inc. grew revenue faster over the last twelve months: −1.64% against −5.86%. Rush Enterprises, Inc. has the higher net margin (3.67% vs 0.84%) and the higher return on invested capital (9.44% vs 1.31%). Across the 22 metrics below, Rush Enterprises, Inc. leads on 16 and CarMax, Inc. on 6.

Valuation

Metric KMX RUSHA Auto & Truck Dealerships median
P/E 37.39 21.16 16.07
P/S 0.31 0.78 0.43
P/B 1.33 2.38 2.36
Price to free cash flow 8.16 16.04 10.48
EV/EBITDA 25.43 9.08 8.50
EV/Sales 0.95 0.79 0.89
Earnings yield 2.67% 4.73% 2.72%
Free cash flow yield 12.26% 6.24% 2.83%

Profitability

Metric KMX RUSHA Auto & Truck Dealerships median
Gross margin 10.50% 19.74% 19.56%
Operating margin 1.83% 5.13% 3.73%
Net margin 0.84% 3.67% 1.07%
Free cash flow margin 3.78% 4.83% 2.34%
Return on equity 3.59% 11.71% 10.04%
Return on assets 0.82% 5.66% 0.61%
Return on invested capital 1.31% 9.44% 6.85%

Growth

Metric KMX RUSHA Auto & Truck Dealerships median
Revenue growth (TTM) (1.64%) (5.86%) 1.46%
EPS growth (last fiscal year) (47.66%) (12.10%) —
Revenue growth, 5-year CAGR 6.43% 9.44% 10.46%
Net income growth, 5-year CAGR (19.83%) 18.08% 0.00%

Health

Metric KMX RUSHA Auto & Truck Dealerships median
Debt to equity 2.87 0.16 0.55
Current ratio 2.70 1.45 1.15
Net debt to EBITDA 16.96 0.23 1.34

Dividend

Metric KMX RUSHA Auto & Truck Dealerships median
Dividend yield — 1.19% 1.37%
Payout ratio 0.00 0.13 0.00

Size

Metric KMX RUSHA Auto & Truck Dealerships median
Market cap 8.00b 5.78b 2.10b

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