CarMax, Inc. (KMX) vs Valvoline (VVV)

CarMax, Inc. and Valvoline are both Auto & Truck Dealerships companies. CarMax, Inc. is the larger, with a market value of $7.5B against $4.0B — 1.9× the size. CarMax, Inc. trades at the lower P/E: 26.0× against 39.3×. Valvoline grew revenue faster over the last twelve months: 16.1% against 4.79%. Valvoline has the higher net margin (5.17% vs 1.06%) and the higher return on invested capital (9.72% vs 1.58%). Across the 22 metrics below, Valvoline leads on 13 and CarMax, Inc. on 9.

Valuation

Metric KMX VVV Auto & Truck Dealerships median
P/E 25.96 39.33 15.92
P/S 0.27 2.05 0.27
P/B 1.20 9.65 2.00
Price to free cash flow 6.60 29.72 10.69
EV/EBITDA 21.90 12.50 8.59
EV/Sales 0.85 2.82 0.68
Earnings yield 3.85% 2.54% 3.16%
Free cash flow yield 15.15% 3.37% 2.80%

Profitability

Metric KMX VVV Auto & Truck Dealerships median
Gross margin 10.31% 38.28% 19.56%
Operating margin 2.05% 15.33% 3.73%
Net margin 1.06% 5.17% 1.18%
Free cash flow margin 4.15% 6.89% 2.34%
Return on equity 4.68% 27.80% 10.04%
Return on assets 1.10% 3.36% 0.75%
Return on invested capital 1.58% 9.72% 6.85%

Growth

Metric KMX VVV Auto & Truck Dealerships median
Revenue growth (TTM) 4.79% 16.08% 3.12%
EPS growth (last fiscal year) (47.66%) 1.86% 2.35%
Revenue growth, 5-year CAGR 6.43% 18.66% 10.46%
Net income growth, 5-year CAGR (19.83%) (7.82%) 0.00%

Health

Metric KMX VVV Auto & Truck Dealerships median
Debt to equity 2.67 3.84 0.55
Current ratio 2.33 0.70 1.15
Net debt to EBITDA 16.96 2.01 1.34

Dividend

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

Size

Metric KMX VVV Auto & Truck Dealerships median
Market cap 7.47b 4.03b 2.14b

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