CPRT vs KAR vs CVNA vs VRM vs KMX

For growth investors, Carvana Co.

(CVNA) is the stronger pick with 48. 6% revenue growth year-over-year, versus -98. 7% for Vroom, Inc. (VRM). CarMax, Inc. (KMX) offers the better valuation at 12. 6x trailing P/E (15. 0x forward), making it the more compelling value choice. Analysts rate Copart, Inc. (CPRT) a "Buy" — based on 19 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.

On trailing P/E, CarMax, Inc.

(KMX) is the cheapest at 12. 6x versus Carvana Co. at 46. 1x. On forward P/E, Carvana Co. is actually cheaper at 10. 0x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Carvana Co.

(CVNA) delivered a total return of +60. 9%, compared to -99. 6% for Vroom, Inc. (VRM). Over 10 years, the gap is even starker: CVNA returned +34. 1% versus VRM's -99. 6%. 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), Copart, Inc.

(CPRT) is the lower-risk stock at 0. 51β versus Carvana Co. 's 1. 89β — meaning CVNA is approximately 273% more volatile than CPRT relative to the S&P 500. On balance sheet safety, Copart, Inc. (CPRT) carries a lower debt/equity ratio of 1% versus 3% for CarMax, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Carvana Co.

(CVNA) is pulling ahead at 48. 6% versus -98. 7% for Vroom, Inc. (VRM). On earnings-per-share growth, the picture is similar: Carvana Co. grew EPS 431. 4% year-over-year, compared to 6. 3% for CarMax, Inc.. Over a 3-year CAGR, CVNA leads at 14. 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.

Copart, Inc.

(CPRT) is the more profitable company, earning 33. 4% net margin versus -1422. 3% for Vroom, Inc. — meaning it keeps 33. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CPRT leads at 36. 5% 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.

On forward earnings alone, Carvana Co.

(CVNA) trades at 10. 0x forward P/E versus 21. 5x for Copart, Inc. — 11. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CVNA: 521. 0% to $484. 00.

In this comparison, KAR (1.

3% yield) pays a dividend. CPRT, CVNA, VRM, KMX do not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Copart, Inc.

(CPRT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 51), +528. 5% 10Y return). Carvana Co. (CVNA) carries a higher beta of 1. 89 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (CPRT: +528. 5%, CVNA: +34. 1%), 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.

These companies operate in different sectors (CPRT (Industrials) and KAR (Consumer Cyclical) and CVNA (Consumer Cyclical) and VRM (Consumer Cyclical) and KMX (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: CPRT is a mid-cap quality compounder stock; KAR is a small-cap deep-value stock; CVNA is a mid-cap high-growth stock; VRM is a small-cap quality compounder stock; KMX is a small-cap deep-value stock. KAR pays a dividend while CPRT, CVNA, VRM, KMX do 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.