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 $4.6B — 1.6× the size. CarMax, Inc. trades at the lower P/E: 25.8× against 44.7×. 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 25.76 44.66 15.49
P/S 0.27 2.33 0.24
P/B 1.19 10.96 1.45
Price to free cash flow 6.54 33.75 10.17
EV/EBITDA 21.84 13.73 8.57
EV/Sales 0.85 3.10 0.47
Earnings yield 3.88% 2.24% 2.96%
Free cash flow yield 15.30% 2.96% 2.14%

Profitability

Metric KMX VVV Auto & Truck Dealerships median
Gross margin 10.31% 38.28% 18.39%
Operating margin 2.05% 15.33% 3.69%
Net margin 1.06% 5.17% 1.20%
Free cash flow margin 4.15% 6.89% 0.86%
Return on equity 4.68% 27.80% 11.73%
Return on assets 1.10% 3.36% 0.75%
Return on invested capital 1.58% 9.72% 6.38%

Growth

Metric KMX VVV Auto & Truck Dealerships median
Revenue growth (TTM) 4.79% 16.08% 0.29%
EPS growth (last fiscal year) (47.66%) 1.86% (0.89%)
Revenue growth, 5-year CAGR 6.43% 18.66% 9.44%
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 0.61
Current ratio 2.33 0.70 1.16
Net debt to EBITDA 16.96 2.01 1.24

Dividend

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

Size

Metric KMX VVV Auto & Truck Dealerships median
Market cap 7.47b 4.57b 2.03b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack