KMX
CarMax, Inc.
Auto - Dealerships
Market Cap$5.64B
5Y Perf.-55.2%
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Stock Comparison
KMX vs PAG
Revenue, margins, valuation, and 5-year total return — side by side.
PAG
Penske Automotive Group, Inc.
Auto - Dealerships
Market Cap$11.16B
5Y Perf.+374.6%
KMX vs PAG — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | KMX | PAG |
|---|---|---|
| Industry | Auto - Dealerships | Auto - Dealerships |
| Market Cap | $5.64B | $11.16B |
| Revenue (TTM) | $27.38B | $32.07B |
| Net Income (TTM) | $458M | $926M |
| Gross Margin | 11.0% | 16.4% |
| Operating Margin | 1.7% | 3.9% |
| Forward P/E | 14.6x | 12.8x |
| Total Debt | $19.43B | $8.82B |
| Cash & Equiv. | $247M | $65M |
KMX vs PAG — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
KMX
PAG
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| CarMax, Inc. (KMX) | 100 | 44.8 | -55.2% |
| Penske Automotive G… (PAG) | 100 | 474.6 | +374.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: KMX vs PAG
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: PAG leads in 6 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. CarMax, Inc. is the stronger pick specifically for growth and revenue expansion. As sector peers, any of these can serve as alternatives in the same allocation.
KMX
CarMax, Inc.
The Growth Play
KMX is the clearest fit if your priority is growth exposure.
- Rev growth -0.0%, EPS growth 6.3%, 3Y rev CAGR -5.3%
- -0.0% revenue growth vs PAG's -0.2%
Best for: growth exposure
PAG
Penske Automotive Group, Inc.
The Income Pick
PAG carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 5 yrs, beta 0.66, yield 3.1%
- 422.4% 10Y total return vs KMX's -21.8%
- Lower volatility, beta 0.66, current ratio 0.99x
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | KMX | -0.0% revenue growth vs PAG's -0.2% |
| Value | PAG | Lower P/E (12.8x vs 14.6x) |
| Quality / Margins | PAG | 2.9% margin vs KMX's 1.7% |
| Stability / Safety | PAG | Beta 0.66 vs KMX's 1.32, lower leverage |
| Dividends | PAG | 3.1% yield; 5-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | PAG | +12.5% vs KMX's -40.6% |
| Efficiency (ROA) | PAG | 5.2% ROA vs KMX's 1.8%, ROIC 6.9% vs 2.4% |
KMX vs PAG — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
KMX vs PAG — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLPAGLAGGINGKMX
KMXCarMax, Inc.
0leads
PAGPenske Automotive Gro…
6leads
6 Total Categories
CATEGORYLEADERvs KMXMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
PAG5/6
Valuation MetricsMultiples, price ratios, and targets
PAG4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
PAG8/9
Total Returns1Y, 3Y, 5Y total returns with dividends
PAG6/6
Risk & VolatilityBeta, volatility, and downside exposure
PAG2/2
Analyst OutlookRatings, price targets, and dividends
PAG1/1
Income & Cash Flow (Last 12 Months)
PAG leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
PAG and KMX operate at a comparable scale, with $32.1B and $27.4B in trailing revenue. Profitability is closely matched — net margins range from 2.9% (PAG) to 1.7% (KMX). On growth, PAG holds the edge at +3.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | KMXCarMax, Inc. | PAGPenske Automotive… |
|---|---|---|
| RevenueTrailing 12 months | $27.4B | $32.1B |
| EBITDAEarnings before interest/tax | $791M | $1.4B |
| Net IncomeAfter-tax profit | $458M | $926M |
| Free Cash FlowCash after capex | $1.9B | $465M |
| Gross MarginGross profit ÷ Revenue | +11.0% | +16.4% |
| Operating MarginEBIT ÷ Revenue | +1.7% | +3.9% |
| Net MarginNet income ÷ Revenue | +1.7% | +2.9% |
| FCF MarginFCF ÷ Revenue | +7.1% | +1.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | -13.4% | +3.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -46.9% | -2.7% |
PAG leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
PAG leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 12.0x trailing earnings, PAG trades at a 2% valuation discount to KMX's 12.3x P/E. On an enterprise value basis, PAG's 13.7x EV/EBITDA is more attractive than KMX's 22.5x.
| Metric | KMXCarMax, Inc. | PAGPenske Automotive… |
|---|---|---|
| Market CapShares × price | $5.6B | $11.2B |
| Enterprise ValueMkt cap + debt − cash | $24.8B | $19.9B |
| Trailing P/EPrice ÷ TTM EPS | 12.28x | 12.01x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.64x | 12.82x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.75x |
| EV / EBITDAEnterprise value multiple | 22.55x | 13.71x |
| Price / SalesMarket cap ÷ Revenue | 0.20x | 0.35x |
| Price / BookPrice ÷ Book value/share | 0.99x | 2.01x |
| Price / FCFMarket cap ÷ FCF | 36.04x | 15.08x |
PAG leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
PAG leads this category, winning 8 of 9 comparable metrics.
Profitability & Efficiency
PAG delivers a 16.4% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $8 for KMX. PAG carries lower financial leverage with a 1.58x debt-to-equity ratio, signaling a more conservative balance sheet compared to KMX's 3.11x. On the Piotroski fundamental quality scale (0–9), KMX scores 8/9 vs PAG's 7/9, reflecting strong financial health.
| Metric | KMXCarMax, Inc. | PAGPenske Automotive… |
|---|---|---|
| ROE (TTM)Return on equity | +7.5% | +16.4% |
| ROA (TTM)Return on assets | +1.8% | +5.2% |
| ROICReturn on invested capital | +2.4% | +6.9% |
| ROCEReturn on capital employed | +3.1% | +11.5% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 7 |
| Debt / EquityFinancial leverage | 3.11x | 1.58x |
| Net DebtTotal debt minus cash | $19.2B | $8.8B |
| Cash & Equiv.Liquid assets | $247M | $65M |
| Total DebtShort + long-term debt | $19.4B | $8.8B |
| Interest CoverageEBIT ÷ Interest expense | 3.08x | 6.37x |
PAG leads this category, winning 8 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
PAG leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PAG five years ago would be worth $20,201 today (with dividends reinvested), compared to $3,026 for KMX. Over the past 12 months, PAG leads with a +12.5% total return vs KMX's -40.6%. The 3-year compound annual growth rate (CAGR) favors PAG at 9.3% vs KMX's -18.5% — a key indicator of consistent wealth creation.
| Metric | KMXCarMax, Inc. | PAGPenske Automotive… |
|---|---|---|
| YTD ReturnYear-to-date | +0.4% | +8.2% |
| 1-Year ReturnPast 12 months | -40.6% | +12.5% |
| 3-Year ReturnCumulative with dividends | -45.8% | +30.7% |
| 5-Year ReturnCumulative with dividends | -69.7% | +102.0% |
| 10-Year ReturnCumulative with dividends | -21.8% | +422.4% |
| CAGR (3Y)Annualised 3-year return | -18.5% | +9.3% |
PAG leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
PAG leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
PAG is the less volatile stock with a 0.66 beta — it tends to amplify market swings less than KMX's 1.32 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PAG currently trades 89.6% from its 52-week high vs KMX's 54.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | KMXCarMax, Inc. | PAGPenske Automotive… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.32x | 0.66x |
| 52-Week HighHighest price in past year | $71.99 | $189.51 |
| 52-Week LowLowest price in past year | $30.26 | $140.12 |
| % of 52W HighCurrent price vs 52-week peak | +54.8% | +89.6% |
| RSI (14)Momentum oscillator 0–100 | 38.3 | 64.4 |
| Avg Volume (50D)Average daily shares traded | 3.2M | 276K |
PAG leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
PAG leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates KMX as "Hold" and PAG as "Buy". Consensus price targets imply 11.9% upside for PAG (target: $190) vs -4.2% for KMX (target: $38). PAG is the only dividend payer here at 3.06% yield — a key consideration for income-focused portfolios.
| Metric | KMXCarMax, Inc. | PAGPenske Automotive… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $37.78 | $190.00 |
| # AnalystsCovering analysts | 35 | 26 |
| Dividend YieldAnnual dividend ÷ price | — | +3.1% |
| Dividend StreakConsecutive years of raises | 1 | 5 |
| Dividend / ShareAnnual DPS | — | $5.19 |
| Buyback YieldShare repurchases ÷ mkt cap | +7.6% | +1.4% |
PAG leads this category, winning 1 of 1 comparable metric.
Key Takeaway
PAG leads in 6 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics.
Best OverallPenske Automotive Group, In… (PAG)Leads 6 of 6 categories
Loading custom metrics...
KMX vs PAG: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is KMX or PAG a better buy right now?
For growth investors, CarMax, Inc.
(KMX) is the stronger pick with -0. 0% revenue growth year-over-year, versus -0. 2% for Penske Automotive Group, Inc. (PAG). Penske Automotive Group, Inc. (PAG) offers the better valuation at 12. 0x trailing P/E (12. 8x forward), making it the more compelling value choice. Analysts rate Penske Automotive Group, Inc. (PAG) a "Buy" — based on 26 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — KMX or PAG?
On trailing P/E, Penske Automotive Group, Inc.
(PAG) is the cheapest at 12. 0x versus CarMax, Inc. at 12. 3x. On forward P/E, Penske Automotive Group, Inc. is actually cheaper at 12. 8x.
03Which is the better long-term investment — KMX or PAG?
Over the past 5 years, Penske Automotive Group, Inc.
(PAG) delivered a total return of +102. 0%, compared to -69. 7% for CarMax, Inc. (KMX). Over 10 years, the gap is even starker: PAG returned +422. 4% versus KMX's -21. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — KMX or PAG?
By beta (market sensitivity over 5 years), Penske Automotive Group, Inc.
(PAG) is the lower-risk stock at 0. 66β versus CarMax, Inc. 's 1. 32β — meaning KMX is approximately 99% more volatile than PAG relative to the S&P 500. On balance sheet safety, Penske Automotive Group, Inc. (PAG) carries a lower debt/equity ratio of 158% versus 3% for CarMax, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — KMX or PAG?
By revenue growth (latest reported year), CarMax, Inc.
(KMX) is pulling ahead at -0. 0% versus -0. 2% for Penske Automotive Group, Inc. (PAG). On earnings-per-share growth, the picture is similar: CarMax, Inc. grew EPS 6. 3% year-over-year, compared to -2. 5% for Penske Automotive Group, Inc.. Over a 3-year CAGR, PAG leads at 4. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — KMX or PAG?
Penske Automotive Group, Inc.
(PAG) is the more profitable company, earning 2. 9% net margin versus 1. 8% for CarMax, Inc. — meaning it keeps 2. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PAG leads at 4. 0% versus 2. 8% for KMX. At the gross margin level — before operating expenses — PAG leads at 16. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is KMX or PAG more undervalued right now?
On forward earnings alone, Penske Automotive Group, Inc.
(PAG) trades at 12. 8x forward P/E versus 14. 6x for CarMax, Inc. — 1. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PAG: 11. 9% to $190. 00.
08Which pays a better dividend — KMX or PAG?
In this comparison, PAG (3.
1% yield) pays a dividend. KMX does not pay a meaningful dividend and should not be held primarily for income.
09Is KMX or PAG better for a retirement portfolio?
For long-horizon retirement investors, Penske Automotive Group, Inc.
(PAG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 66), 3. 1% yield, +422. 4% 10Y return). Both have compounded well over 10 years (PAG: +422. 4%, KMX: -21. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between KMX and PAG?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
PAG pays a dividend while KMX does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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