KMX vs. PAG, LAD, AN, 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), Lithia Motors (LAD), AutoNation (AN), 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.
CarMax (NYSE:KMX) and Penske Automotive Group (NYSE:PAG) are both large-cap retail/wholesale companies, but which is the superior business? We will contrast the two companies based on the strength of their community ranking, risk, analyst recommendations, media sentiment, earnings, valuation, institutional ownership, dividends and profitability.
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.
77.1% of Penske Automotive Group shares are held by institutional investors. 1.7% of CarMax shares are held by company insiders. Comparatively, 51.7% of Penske Automotive Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
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.
CarMax presently has a consensus target price of $77.42, indicating a potential upside of 10.19%. Penske Automotive Group has a consensus target price of $163.20, indicating a potential upside of 7.30%. Given CarMax's stronger consensus rating and higher possible upside, research analysts plainly believe CarMax is more favorable than Penske Automotive Group.
CarMax received 338 more outperform votes than Penske Automotive Group when rated by MarketBeat users. Likewise, 63.90% of users gave CarMax an outperform vote while only 60.45% of users gave Penske Automotive Group an outperform vote.
In the previous week, CarMax had 2 more articles in the media than Penske Automotive Group. MarketBeat recorded 5 mentions for CarMax and 3 mentions for Penske Automotive Group. CarMax's average media sentiment score of 0.91 beat Penske Automotive Group's score of 0.56 indicating that CarMax is being referred to more favorably in the media.
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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