VRM vs KMX

For growth investors, CarMax, Inc.

(KMX) is the stronger pick with -0. 0% revenue growth year-over-year, versus -98. 7% for Vroom, Inc. (VRM). CarMax, Inc. (KMX) offers the better valuation at 12. 4x trailing P/E (14. 8x forward), making it the more compelling value choice. Analysts rate CarMax, Inc. (KMX) a "Hold" — based on 35 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.

Over the past 5 years, CarMax, Inc.

(KMX) delivered a total return of -69. 3%, compared to -99. 6% for Vroom, Inc. (VRM). Over 10 years, the gap is even starker: KMX returned -22. 1% versus VRM's -99. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), CarMax, Inc.

(KMX) is the lower-risk stock at 1. 32β versus Vroom, Inc. 's 1. 85β — meaning VRM is approximately 40% more volatile than KMX relative to the S&P 500.

By revenue growth (latest reported year), CarMax, Inc.

(KMX) is pulling ahead at -0. 0% versus -98. 7% for Vroom, Inc. (VRM). On earnings-per-share growth, the picture is similar: Vroom, Inc. grew EPS 56. 6% year-over-year, compared to 6. 3% for CarMax, Inc.. Over a 3-year CAGR, KMX leads at -5. 3% 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.

CarMax, Inc.

(KMX) is the more profitable company, earning 1. 8% net margin versus -1422. 3% for Vroom, Inc. — meaning it keeps 1. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KMX leads at 2. 8% versus -1092. 2% for VRM. At the gross margin level — before operating expenses — VRM leads at 100. 0%, 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.

None of the stocks in this comparison currently pay a material dividend.

All are effectively zero-yield and should be held for capital appreciation rather than income.

For long-horizon retirement investors, CarMax, Inc.

(KMX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding. Vroom, Inc. (VRM) carries a higher beta of 1. 85 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (KMX: -22. 1%, VRM: -99. 7%), 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.

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.

In terms of investment character: VRM is a small-cap quality compounder stock; KMX is a small-cap deep-value stock. 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.