CRMT vs KMX

For growth investors, CarMax, Inc.

(KMX) is the stronger pick with -0. 0% revenue growth year-over-year, versus -0. 2% for America's Car-Mart, Inc. (CRMT). America's Car-Mart, Inc. (CRMT) offers the better valuation at 5. 5x trailing P/E, making it the more compelling value choice. Analysts rate America's Car-Mart, Inc. (CRMT) a "Buy" — based on 9 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, America's Car-Mart, Inc.

(CRMT) is the cheapest at 5. 5x versus CarMax, Inc. at 12. 4x.

Over the past 5 years, CarMax, Inc.

(KMX) delivered a total return of -69. 3%, compared to -91. 6% for America's Car-Mart, Inc. (CRMT). Over 10 years, the gap is even starker: KMX returned -22. 1% versus CRMT's -49. 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), CarMax, Inc.

(KMX) is the lower-risk stock at 1. 32β versus America's Car-Mart, Inc. 's 1. 84β — meaning CRMT is approximately 39% more volatile than KMX relative to the S&P 500. On balance sheet safety, America's Car-Mart, Inc. (CRMT) carries a lower debt/equity ratio of 148% versus 3% for CarMax, Inc. — giving it more financial flexibility in a downturn.

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

(KMX) is pulling ahead at -0. 0% versus -0. 2% for America's Car-Mart, Inc. (CRMT). On earnings-per-share growth, the picture is similar: America's Car-Mart, Inc. grew EPS 147. 5% year-over-year, compared to 6. 3% for CarMax, Inc.. Over a 3-year CAGR, CRMT leads at 4. 7% 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 1. 3% for America's Car-Mart, Inc. — meaning it keeps 1. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CRMT leads at 6. 7% versus 2. 8% for KMX. At the gross margin level — before operating expenses — CRMT leads at 47. 8%, 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.

Analyst consensus price targets imply the most upside for CRMT: 9.

5% to $14. 00.

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. America's Car-Mart, Inc. (CRMT) carries a higher beta of 1. 84 — 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%, CRMT: -49. 6%), 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.

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.