KAR vs CPRT vs AN vs KMX vs CVNA

For growth investors, Carvana Co.

(CVNA) is the stronger pick with 48. 6% revenue growth year-over-year, versus -0. 0% for CarMax, Inc. (KMX). 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 Copart, Inc. 's 1. 28x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, AutoNation, Inc.

(AN) delivered a total return of +94. 1%, 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), Copart, Inc.

(CPRT) is the lower-risk stock at 0. 52β versus Carvana Co. 's 2. 14β — meaning CVNA is approximately 312% 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 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. 0% for CarMax, Inc. (KMX). On earnings-per-share growth, the picture is similar: Carvana Co. grew EPS 431. 4% year-over-year, compared to 0. 7% for AutoNation, 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 1. 8% for CarMax, 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 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 Copart, Inc. 's 1. 28x. 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, KAR (1.

3% yield) pays a dividend. CPRT, AN, KMX, CVNA 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. 52), +527. 2% 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 (CPRT: +527. 2%, 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.

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

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