KMX
CarMax, Inc.
Auto - Dealerships
Market Cap$5.64B
5Y Perf.-55.2%
Compare Stocks
2 / 10Try these comparisons:
Stock Comparison
KMX vs SAH
Revenue, margins, valuation, and 5-year total return — side by side.
SAH
Sonic Automotive, Inc.
Auto - Dealerships
Market Cap$2.69B
5Y Perf.+200.6%
KMX vs SAH — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | KMX | SAH |
|---|---|---|
| Industry | Auto - Dealerships | Auto - Dealerships |
| Market Cap | $5.64B | $2.69B |
| Revenue (TTM) | $27.38B | $15.15B |
| Net Income (TTM) | $458M | $119M |
| Gross Margin | 11.0% | 14.6% |
| Operating Margin | 1.7% | 3.6% |
| Forward P/E | 14.6x | 12.2x |
| Total Debt | $19.43B | $4.23B |
| Cash & Equiv. | $247M | $6M |
KMX vs SAH — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
KMX
SAH
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| CarMax, Inc. (KMX) | 100 | 44.8 | -55.2% |
| Sonic Automotive, I… (SAH) | 100 | 300.6 | +200.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: KMX vs SAH
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: SAH leads in 6 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. CarMax, Inc. is the stronger pick specifically for profitability and margin quality. As sector peers, any of these can serve as alternatives in the same allocation.
KMX
CarMax, Inc.
The Defensive Pick
KMX is the clearest fit if your priority is sleep-well-at-night.
- Lower volatility, beta 1.32, current ratio 2.31x
- 1.7% margin vs SAH's 0.8%
Best for: sleep-well-at-night
SAH
Sonic Automotive, Inc.
The Income Pick
SAH carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 10 yrs, beta 1.05, yield 1.8%
- Rev growth 6.5%, EPS growth -44.7%, 3Y rev CAGR 2.7%
- 387.7% 10Y total return vs KMX's -21.8%
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | SAH | 6.5% revenue growth vs KMX's -0.0% |
| Value | SAH | Lower P/E (12.2x vs 14.6x) |
| Quality / Margins | KMX | 1.7% margin vs SAH's 0.8% |
| Stability / Safety | SAH | Beta 1.05 vs KMX's 1.32 |
| Dividends | SAH | 1.8% yield; 10-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | SAH | +28.1% vs KMX's -40.6% |
| Efficiency (ROA) | SAH | 2.0% ROA vs KMX's 1.8%, ROIC 7.8% vs 2.4% |
KMX vs SAH — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
KMX vs SAH — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLSAHLAGGINGKMX
KMXCarMax, Inc.
0leads
SAHSonic Automotive, Inc.
6leads
6 Total Categories
CATEGORYLEADERvs KMXMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
SAH4/6
Valuation MetricsMultiples, price ratios, and targets
SAH4/6
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
SAH6/9
Total Returns1Y, 3Y, 5Y total returns with dividends
SAH6/6
Risk & VolatilityBeta, volatility, and downside exposure
SAH2/2
Analyst OutlookRatings, price targets, and dividends
SAH1/1
Income & Cash Flow (Last 12 Months)
SAH leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
KMX is the larger business by revenue, generating $27.4B annually — 1.8x SAH's $15.2B. Profitability is closely matched — net margins range from 1.7% (KMX) to 0.8% (SAH). On growth, SAH holds the edge at -0.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | KMXCarMax, Inc. | SAHSonic Automotive,… |
|---|---|---|
| RevenueTrailing 12 months | $27.4B | $15.2B |
| EBITDAEarnings before interest/tax | $791M | $705M |
| Net IncomeAfter-tax profit | $458M | $119M |
| Free Cash FlowCash after capex | $1.9B | $425M |
| Gross MarginGross profit ÷ Revenue | +11.0% | +14.6% |
| Operating MarginEBIT ÷ Revenue | +1.7% | +3.6% |
| Net MarginNet income ÷ Revenue | +1.7% | +0.8% |
| FCF MarginFCF ÷ Revenue | +7.1% | +2.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | -13.4% | -0.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -46.9% | -18.6% |
SAH leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
SAH leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 12.3x trailing earnings, KMX trades at a 47% valuation discount to SAH's 23.1x P/E. On an enterprise value basis, SAH's 9.8x EV/EBITDA is more attractive than KMX's 22.5x.
| Metric | KMXCarMax, Inc. | SAHSonic Automotive,… |
|---|---|---|
| Market CapShares × price | $5.6B | $2.7B |
| Enterprise ValueMkt cap + debt − cash | $24.8B | $6.9B |
| Trailing P/EPrice ÷ TTM EPS | 12.28x | 23.10x |
| Forward P/EPrice ÷ next-FY EPS est. | 14.64x | 12.20x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 22.55x | 9.80x |
| Price / SalesMarket cap ÷ Revenue | 0.20x | 0.18x |
| Price / BookPrice ÷ Book value/share | 0.99x | 2.57x |
| Price / FCFMarket cap ÷ FCF | 36.04x | 6.43x |
SAH leads this category, winning 4 of 6 comparable metrics.
Profitability & Efficiency
SAH leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
SAH delivers a 11.2% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $8 for KMX. KMX carries lower financial leverage with a 3.11x debt-to-equity ratio, signaling a more conservative balance sheet compared to SAH's 3.96x. On the Piotroski fundamental quality scale (0–9), KMX scores 8/9 vs SAH's 6/9, reflecting strong financial health.
| Metric | KMXCarMax, Inc. | SAHSonic Automotive,… |
|---|---|---|
| ROE (TTM)Return on equity | +7.5% | +11.2% |
| ROA (TTM)Return on assets | +1.8% | +2.0% |
| ROICReturn on invested capital | +2.4% | +7.8% |
| ROCEReturn on capital employed | +3.1% | +16.3% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 6 |
| Debt / EquityFinancial leverage | 3.11x | 3.96x |
| Net DebtTotal debt minus cash | $19.2B | $4.2B |
| Cash & Equiv.Liquid assets | $247M | $6M |
| Total DebtShort + long-term debt | $19.4B | $4.2B |
| Interest CoverageEBIT ÷ Interest expense | 3.08x | 1.89x |
SAH leads this category, winning 6 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
SAH leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in SAH five years ago would be worth $16,162 today (with dividends reinvested), compared to $3,026 for KMX. Over the past 12 months, SAH leads with a +28.1% total return vs KMX's -40.6%. The 3-year compound annual growth rate (CAGR) favors SAH at 27.3% vs KMX's -18.5% — a key indicator of consistent wealth creation.
| Metric | KMXCarMax, Inc. | SAHSonic Automotive,… |
|---|---|---|
| YTD ReturnYear-to-date | +0.4% | +28.8% |
| 1-Year ReturnPast 12 months | -40.6% | +28.1% |
| 3-Year ReturnCumulative with dividends | -45.8% | +106.3% |
| 5-Year ReturnCumulative with dividends | -69.7% | +61.6% |
| 10-Year ReturnCumulative with dividends | -21.8% | +387.7% |
| CAGR (3Y)Annualised 3-year return | -18.5% | +27.3% |
SAH leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
SAH leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
SAH is the less volatile stock with a 1.05 beta — it tends to amplify market swings less than KMX's 1.32 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SAH currently trades 88.1% from its 52-week high vs KMX's 54.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | KMXCarMax, Inc. | SAHSonic Automotive,… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.32x | 1.05x |
| 52-Week HighHighest price in past year | $71.99 | $89.62 |
| 52-Week LowLowest price in past year | $30.26 | $54.11 |
| % of 52W HighCurrent price vs 52-week peak | +54.8% | +88.1% |
| RSI (14)Momentum oscillator 0–100 | 38.3 | 70.2 |
| Avg Volume (50D)Average daily shares traded | 3.2M | 308K |
SAH leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
SAH leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates KMX as "Hold" and SAH as "Hold". Consensus price targets imply -4.2% upside for KMX (target: $38) vs -14.8% for SAH (target: $67). SAH is the only dividend payer here at 1.78% yield — a key consideration for income-focused portfolios.
| Metric | KMXCarMax, Inc. | SAHSonic Automotive,… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $37.78 | $67.33 |
| # AnalystsCovering analysts | 35 | 16 |
| Dividend YieldAnnual dividend ÷ price | — | +1.8% |
| Dividend StreakConsecutive years of raises | 1 | 10 |
| Dividend / ShareAnnual DPS | — | $1.41 |
| Buyback YieldShare repurchases ÷ mkt cap | +7.6% | +3.1% |
SAH leads this category, winning 1 of 1 comparable metric.
Key Takeaway
SAH leads in 6 of 6 categories — strongest in Income & Cash Flow and Valuation Metrics.
Best OverallSonic Automotive, Inc. (SAH)Leads 6 of 6 categories
Loading custom metrics...
KMX vs SAH: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is KMX or SAH a better buy right now?
For growth investors, Sonic Automotive, Inc.
(SAH) is the stronger pick with 6. 5% revenue growth year-over-year, versus -0. 0% for CarMax, Inc. (KMX). CarMax, Inc. (KMX) offers the better valuation at 12. 3x trailing P/E (14. 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.
02Which has the better valuation — KMX or SAH?
On trailing P/E, CarMax, Inc.
(KMX) is the cheapest at 12. 3x versus Sonic Automotive, Inc. at 23. 1x. On forward P/E, Sonic Automotive, Inc. is actually cheaper at 12. 2x — notably different from the trailing picture, reflecting expected earnings growth.
03Which is the better long-term investment — KMX or SAH?
Over the past 5 years, Sonic Automotive, Inc.
(SAH) delivered a total return of +61. 6%, compared to -69. 7% for CarMax, Inc. (KMX). Over 10 years, the gap is even starker: SAH returned +387. 7% 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.
04Which is safer — KMX or SAH?
By beta (market sensitivity over 5 years), Sonic Automotive, Inc.
(SAH) is the lower-risk stock at 1. 05β versus CarMax, Inc. 's 1. 32β — meaning KMX is approximately 26% more volatile than SAH relative to the S&P 500. On balance sheet safety, CarMax, Inc. (KMX) carries a lower debt/equity ratio of 3% versus 4% for Sonic Automotive, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — KMX or SAH?
By revenue growth (latest reported year), Sonic Automotive, Inc.
(SAH) is pulling ahead at 6. 5% 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 -44. 7% for Sonic Automotive, Inc.. Over a 3-year CAGR, SAH leads at 2. 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.
06Which has better profit margins — KMX or SAH?
CarMax, Inc.
(KMX) is the more profitable company, earning 1. 8% net margin versus 0. 8% for Sonic Automotive, Inc. — meaning it keeps 1. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SAH leads at 3. 6% versus 2. 8% for KMX. At the gross margin level — before operating expenses — SAH leads at 14. 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.
07Is KMX or SAH more undervalued right now?
On forward earnings alone, Sonic Automotive, Inc.
(SAH) trades at 12. 2x forward P/E versus 14. 6x for CarMax, Inc. — 2. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for KMX: -4. 2% to $37. 78.
08Which pays a better dividend — KMX or SAH?
In this comparison, SAH (1.
8% yield) pays a dividend. KMX does not pay a meaningful dividend and should not be held primarily for income.
09Is KMX or SAH better for a retirement portfolio?
For long-horizon retirement investors, Sonic Automotive, Inc.
(SAH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 05), 1. 8% yield, +387. 7% 10Y return). Both have compounded well over 10 years (SAH: +387. 7%, 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.
10What are the main differences between KMX and SAH?
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: KMX is a small-cap deep-value stock; SAH is a small-cap quality compounder stock. SAH pays a dividend while KMX does 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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
Revenue Growth>
%
(KMX: -13.4% · SAH: -0.6%)P/E Ratio<
x
(KMX: 12.3x · SAH: 23.1x)You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.