KMX vs. PAG, LAD, AN, ABG, GPI, CASY, CVNA, RUSHA, RUSHB, and PFGC
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 Performance Food Group (PFGC). 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 superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, community ranking, analyst recommendations, institutional ownership, media sentiment, profitability and earnings.
Penske Automotive Group has a net margin of 3.57% compared to CarMax's net margin of 1.81%. Penske Automotive Group's return on equity of 24.19% beat CarMax's return on equity.
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 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Penske Automotive Group has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.
CarMax currently has a consensus price target of $77.42, suggesting a potential upside of 11.25%. Penske Automotive Group has a consensus price target of $163.20, suggesting a potential upside of 4.86%. Given CarMax'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.
In the previous week, CarMax had 20 more articles in the media than Penske Automotive Group. MarketBeat recorded 27 mentions for CarMax and 7 mentions for Penske Automotive Group. CarMax's average media sentiment score of 0.26 beat Penske Automotive Group's score of 0.02 indicating that CarMax is being referred to more favorably in the media.
77.1% of Penske Automotive Group shares are held by institutional investors. 1.7% of CarMax shares are held by insiders. Comparatively, 51.7% of Penske Automotive Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
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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