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

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 $3.9B — 1.9× the size. CarMax, Inc. trades at the lower P/E: 25.8× against 26.1×. CarMax, Inc. grew revenue faster over the last twelve months: 4.79% against −5.86%. Rush Enterprises, Inc. has the higher net margin (3.67% vs 1.06%) and the higher return on invested capital (9.44% vs 1.58%). Across the 22 metrics below, Rush Enterprises, Inc. leads on 13 and CarMax, Inc. on 9.

Valuation

Metric KMX RUSHB Auto & Truck Dealerships median
P/E 25.76 26.07 15.49
P/S 0.27 0.96 0.24
P/B 1.19 2.94 1.45
Price to free cash flow 6.54 19.76 10.17
EV/EBITDA 21.84 11.15 8.57
EV/Sales 0.85 0.97 0.47
Earnings yield 3.88% 3.84% 2.96%
Free cash flow yield 15.30% 5.06% 2.14%

Profitability

Metric KMX RUSHB Auto & Truck Dealerships median
Gross margin 10.31% 19.74% 18.39%
Operating margin 2.05% 5.13% 3.69%
Net margin 1.06% 3.67% 1.20%
Free cash flow margin 4.15% 4.83% 0.86%
Return on equity 4.68% 11.71% 11.73%
Return on assets 1.10% 5.66% 0.75%
Return on invested capital 1.58% 9.44% 6.38%

Growth

Metric KMX RUSHB Auto & Truck Dealerships median
Revenue growth (TTM) 4.79% (5.86%) 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 RUSHB Auto & Truck Dealerships median
Debt to equity 2.67 0.16 0.61
Current ratio 2.33 1.45 1.16
Net debt to EBITDA 16.96 0.23 1.24

Dividend

Metric KMX RUSHB Auto & Truck Dealerships median
Dividend yield — 0.88% 1.02%
Payout ratio — 0.24 0.24

Size

Metric KMX RUSHB Auto & Truck Dealerships median
Market cap 7.47b 3.87b 2.03b

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