KMX vs ABG

For growth investors, Asbury Automotive Group, Inc.

(ABG) is the stronger pick with 4. 7% revenue growth year-over-year, versus -0. 0% for CarMax, Inc. (KMX). Asbury Automotive Group, Inc. (ABG) offers the better valuation at 7. 9x trailing P/E (7. 6x 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.

On trailing P/E, Asbury Automotive Group, Inc.

(ABG) is the cheapest at 7. 9x versus CarMax, Inc. at 12. 3x. On forward P/E, Asbury Automotive Group, Inc. is actually cheaper at 7. 6x.

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

(ABG) delivered a total return of -5. 5%, compared to -69. 7% for CarMax, Inc. (KMX). Over 10 years, the gap is even starker: ABG returned +251. 9% versus KMX's -21. 8%. 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), Asbury Automotive Group, Inc.

(ABG) is the lower-risk stock at 1. 04β versus CarMax, Inc. 's 1. 32β — meaning KMX is approximately 27% more volatile than ABG relative to the S&P 500. On balance sheet safety, Asbury Automotive Group, Inc. (ABG) carries a lower debt/equity ratio of 163% versus 3% for CarMax, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Asbury Automotive Group, Inc.

(ABG) is pulling ahead at 4. 7% versus -0. 0% for CarMax, Inc. (KMX). On earnings-per-share growth, the picture is similar: Asbury Automotive Group, Inc. grew EPS 16. 9% year-over-year, compared to 6. 3% for CarMax, Inc.. Over a 3-year CAGR, ABG 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.

Asbury Automotive Group, Inc.

(ABG) is the more profitable company, earning 2. 7% net margin versus 1. 8% for CarMax, Inc. — meaning it keeps 2. 7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ABG leads at 5. 6% versus 2. 8% for KMX. At the gross margin level — before operating expenses — ABG leads at 16. 6%, 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, Asbury Automotive Group, Inc.

(ABG) trades at 7. 6x forward P/E versus 14. 6x for CarMax, Inc. — 7. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ABG: 20. 4% to $238. 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, Asbury Automotive Group, Inc.

(ABG) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 04), +251. 9% 10Y return). Both have compounded well over 10 years (ABG: +251. 9%, KMX: -21. 8%), 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.