KMX vs AN

For growth investors, AutoNation, Inc.

(AN) is the stronger pick with 3. 2% 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 AutoNation, Inc. (AN) a "Buy" — based on 34 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 CarMax, Inc. at 12. 3x. On forward P/E, AutoNation, Inc. is actually cheaper at 9. 7x.

Over the past 5 years, AutoNation, Inc.

(AN) delivered a total return of +91. 6%, compared to -69. 7% for CarMax, Inc. (KMX). Over 10 years, the gap is even starker: AN returned +323. 8% 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), AutoNation, Inc.

(AN) is the lower-risk stock at 0. 85β versus CarMax, Inc. 's 1. 32β — meaning KMX is approximately 56% more volatile than AN relative to the S&P 500. On balance sheet safety, CarMax, Inc. (KMX) carries a lower debt/equity ratio of 3% versus 4% for AutoNation, Inc. — giving it more financial flexibility in a downturn.

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

(AN) is pulling ahead at 3. 2% versus -0. 0% for CarMax, Inc. (KMX). On earnings-per-share growth, the picture is similar: CarMax, Inc. grew EPS 6. 3% year-over-year, compared to 0. 7% for AutoNation, Inc.. Over a 3-year CAGR, AN leads at 0. 8% 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.

AutoNation, Inc.

(AN) is the more profitable company, earning 2. 3% net margin versus 1. 8% for CarMax, Inc. — meaning it keeps 2. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AN leads at 4. 8% versus 2. 8% for KMX. At the gross margin level — before operating expenses — AN leads at 17. 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, AutoNation, Inc.

(AN) trades at 9. 7x forward P/E versus 14. 6x for CarMax, Inc. — 5. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AN: 21. 1% to $248. 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, AutoNation, Inc.

(AN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 85), +323. 8% 10Y return). Both have compounded well over 10 years (AN: +323. 8%, 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.