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. Rush Enterprises, Inc. trades at the lower P/E: 25.3× against 26.0×. 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 15 and CarMax, Inc. on 7.

Valuation

Metric KMX RUSHB Auto & Truck Dealerships median
P/E 25.96 25.33 15.92
P/S 0.27 0.93 0.27
P/B 1.20 2.85 2.00
Price to free cash flow 6.60 19.20 10.69
EV/EBITDA 21.90 10.83 8.59
EV/Sales 0.85 0.94 0.68
Earnings yield 3.85% 3.95% 3.16%
Free cash flow yield 15.15% 5.21% 2.80%

Profitability

Metric KMX RUSHB Auto & Truck Dealerships median
Gross margin 10.31% 19.74% 19.56%
Operating margin 2.05% 5.13% 3.73%
Net margin 1.06% 3.67% 1.18%
Free cash flow margin 4.15% 4.83% 2.34%
Return on equity 4.68% 11.71% 10.04%
Return on assets 1.10% 5.66% 0.75%
Return on invested capital 1.58% 9.44% 6.85%

Growth

Metric KMX RUSHB Auto & Truck Dealerships median
Revenue growth (TTM) 4.79% (5.86%) 3.12%
EPS growth (last fiscal year) (47.66%) (12.10%) 2.35%
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 RUSHB Auto & Truck Dealerships median
Debt to equity 2.67 0.16 0.55
Current ratio 2.33 1.45 1.15
Net debt to EBITDA 16.96 0.23 1.34

Dividend

Metric KMX RUSHB Auto & Truck Dealerships median
Dividend yield — 0.91% 1.03%
Payout ratio — 0.24 0.24

Size

Metric KMX RUSHB Auto & Truck Dealerships median
Market cap 7.47b 3.87b 2.14b

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