KAR vs AN vs PAG vs KMX vs CVNA

For growth investors, Carvana Co.

(CVNA) is the stronger pick with 48. 6% revenue growth year-over-year, versus -0. 2% for Penske Automotive Group, Inc. (PAG). AutoNation, Inc. (AN) offers the better valuation at 12. 0x trailing P/E (9. 7x forward), making it the more compelling value choice. Analysts rate OPENLANE, Inc. (KAR) a "Buy" — based on 18 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, AutoNation, Inc.

(AN) is the cheapest at 12. 0x versus Carvana Co. at 47. 4x. On forward P/E, AutoNation, Inc. is actually cheaper at 9. 7x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: AutoNation, Inc. wins at 0. 31x versus Penske Automotive Group, Inc. 's 0. 81x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Penske Automotive Group, Inc.

(PAG) delivered a total return of +104. 7%, compared to -69. 3% for CarMax, Inc. (KMX). Over 10 years, the gap is even starker: CVNA returned +35. 1% versus KMX's -22. 1%. 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), Penske Automotive Group, Inc.

(PAG) is the lower-risk stock at 0. 66β versus Carvana Co. 's 2. 14β — meaning CVNA is approximately 222% more volatile than PAG relative to the S&P 500. On balance sheet safety, Carvana Co. (CVNA) carries a lower debt/equity ratio of 15% versus 4% for AutoNation, 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 -0. 2% for Penske Automotive Group, Inc. (PAG). On earnings-per-share growth, the picture is similar: Carvana Co. grew EPS 431. 4% year-over-year, compared to -2. 5% for Penske Automotive Group, 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.

OPENLANE, Inc.

(KAR) is the more profitable company, earning 9. 2% net margin versus 1. 8% for CarMax, Inc. — meaning it keeps 9. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: KAR leads at 10. 2% versus 2. 8% for KMX. At the gross margin level — before operating expenses — KAR leads at 46. 2%, 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.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, AutoNation, Inc. (AN) is the more undervalued stock at a PEG of 0. 31x versus Penske Automotive Group, Inc. 's 0. 81x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, AutoNation, Inc. (AN) trades at 9. 7x forward P/E versus 51. 4x for Carvana Co. — 41. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CVNA: 20. 9% to $484. 00.

In this comparison, PAG (3.

0% yield), KAR (1. 3% yield) pay a dividend. AN, KMX, CVNA do not pay a meaningful dividend and should not be held primarily for income.

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. 0% yield, +427. 6% 10Y return). Carvana Co. (CVNA) carries a higher beta of 2. 14 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (PAG: +427. 6%, CVNA: +35. 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.

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: KAR is a small-cap deep-value stock; AN is a small-cap deep-value stock; PAG is a mid-cap deep-value stock; KMX is a small-cap deep-value stock; CVNA is a mid-cap high-growth stock. KAR, PAG pay a dividend while AN, KMX, CVNA 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.