KMX vs. PAG, LAD, AN, ABG, GPI, CASY, CVNA, RUSHA, RUSHB, and TXRH
Should you be buying CarMax stock or one of its competitors? The main competitors of CarMax include Penske Automotive Group (PAG), Lithia Motors (LAD), AutoNation (AN), Asbury Automotive Group (ABG), Group 1 Automotive (GPI), Casey's General Stores (CASY), Carvana (CVNA), Rush Enterprises (RUSHA), Rush Enterprises (RUSHB), and Texas Roadhouse (TXRH). These companies are all part of the "retail/wholesale" sector.
CarMax (NYSE:KMX) and Penske Automotive Group (NYSE:PAG) are both large-cap retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, community ranking, media sentiment, institutional ownership, risk, profitability, analyst recommendations and dividends.
77.1% of Penske Automotive Group shares are held by institutional investors. 1.7% of CarMax shares are held by insiders. Comparatively, 52.2% of Penske Automotive Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
CarMax currently has a consensus price target of $77.42, indicating a potential upside of 7.97%. Penske Automotive Group has a consensus price target of $163.20, indicating a potential upside of 5.01%. Given CarMax's stronger consensus rating and higher possible upside, analysts plainly believe CarMax is more favorable than Penske Automotive Group.
In the previous week, Penske Automotive Group had 3 more articles in the media than CarMax. MarketBeat recorded 9 mentions for Penske Automotive Group and 6 mentions for CarMax. CarMax's average media sentiment score of 1.33 beat Penske Automotive Group's score of 0.73 indicating that CarMax is being referred to more favorably in the media.
CarMax received 337 more outperform votes than Penske Automotive Group when rated by MarketBeat users. Likewise, 63.87% of users gave CarMax an outperform vote while only 60.45% of users gave Penske Automotive Group an outperform vote.
CarMax has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500. Comparatively, Penske Automotive Group has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.
Penske Automotive Group has higher revenue and earnings than CarMax. Penske Automotive Group is trading at a lower price-to-earnings ratio than CarMax, indicating that it is currently the more affordable of the two stocks.
Penske Automotive Group has a net margin of 3.27% compared to CarMax's net margin of 1.81%. Penske Automotive Group's return on equity of 21.72% beat CarMax's return on equity.
Summary
CarMax and Penske Automotive Group tied by winning 9 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding KMX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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