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.
CarMax (NYSE:KMX) and Penske Automotive Group (NYSE:PAG) are both large-cap retail/wholesale companies, but which is the better business? We will contrast the two businesses based on the strength of their media sentiment, institutional ownership, community ranking, dividends, analyst recommendations, profitability, earnings, valuation and risk.
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.
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. Penske Automotive Group's average media sentiment score of 0.97 beat CarMax's score of 0.82 indicating that Penske Automotive Group is being referred to more favorably in the news media.
CarMax presently has a consensus price target of $77.42, indicating a potential upside of 10.19%. Penske Automotive Group has a consensus price target of $163.20, indicating a potential upside of 7.30%. Given CarMax's stronger consensus rating and higher possible upside, equities analysts plainly 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.
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.
77.1% of Penske Automotive Group shares are owned by institutional investors. 1.7% of CarMax shares are owned by company insiders. Comparatively, 51.7% of Penske Automotive Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
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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