KMX vs. PAG, LAD, AN, ABG, AAP, GPI, SAH, MNRO, CRMT, and ORLY
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), Advance Auto Parts (AAP), Group 1 Automotive (GPI), Sonic Automotive (SAH), Monro (MNRO), America's Car-Mart (CRMT), and O'Reilly Automotive (ORLY). These companies are all part of the "automotive retail" industry.
Penske Automotive Group (NYSE:PAG) and CarMax (NYSE:KMX) are both retail/wholesale companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, media sentiment, community ranking, profitability, risk and earnings.
In the previous week, CarMax had 7 more articles in the media than Penske Automotive Group. MarketBeat recorded 14 mentions for CarMax and 7 mentions for Penske Automotive Group. Penske Automotive Group's average media sentiment score of 0.99 beat CarMax's score of 0.94 indicating that CarMax is being referred to more favorably in the news media.
Penske Automotive Group has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, CarMax has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.
77.1% of Penske Automotive Group shares are owned by institutional investors. 51.7% of Penske Automotive Group shares are owned by insiders. Comparatively, 1.7% of CarMax shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Penske Automotive Group currently has a consensus price target of $163.20, suggesting a potential upside of 8.96%. CarMax has a consensus price target of $76.92, suggesting a potential upside of 10.85%. Given Penske Automotive Group's stronger consensus rating and higher probable upside, analysts clearly believe CarMax is more favorable than Penske Automotive Group.
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 Penske Automotive Group's net margin of 1.81%. CarMax's return on equity of 21.72% beat Penske Automotive Group's return on equity.
CarMax received 338 more outperform votes than Penske Automotive Group when rated by MarketBeat users. Likewise, 63.84% of users gave CarMax an outperform vote while only 60.45% of users gave Penske Automotive Group an outperform vote.
Summary
CarMax beats Penske Automotive Group on 10 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.
This 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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