KMX vs. PAG, AN, LAD, ABG, GPI, AAP, 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), AutoNation (AN), Lithia Motors (LAD), Asbury Automotive Group (ABG), Group 1 Automotive (GPI), Advance Auto Parts (AAP), 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 large-cap retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, media sentiment, community ranking, institutional ownership, valuation, risk, analyst recommendations and earnings.
In the previous week, Penske Automotive Group had 7 more articles in the media than CarMax. MarketBeat recorded 17 mentions for Penske Automotive Group and 10 mentions for CarMax. Penske Automotive Group's average media sentiment score of 0.79 beat CarMax's score of 0.27 indicating that CarMax is being referred to more favorably in the news media.
Penske Automotive Group currently has a consensus price target of $157.75, indicating a potential downside of 1.75%. CarMax has a consensus price target of $76.25, indicating a potential downside of 8.15%. Given CarMax's higher probable upside, equities analysts clearly believe Penske Automotive Group is more favorable than CarMax.
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 1.55%. CarMax's return on equity of 21.72% beat Penske Automotive Group's return on equity.
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, endowments and hedge funds believe a company will outperform the market over the long term.
CarMax received 343 more outperform votes than Penske Automotive Group when rated by MarketBeat users. Likewise, 63.57% of users gave CarMax an outperform vote while only 60.52% of users gave Penske Automotive Group an outperform vote.
Penske Automotive Group has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, CarMax has a beta of 1.69, meaning that its stock price is 69% more volatile than the S&P 500.
Summary
Penske Automotive Group beats CarMax 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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