Group 1 Automotive (GPI) Competitors

CarMax (NYSE:KMX) and Group 1 Automotive (NYSE:GPI) are both retail/wholesale companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, media sentiment, valuation, community ranking, earnings, institutional ownership, analyst recommendations, risk and profitability.

Is KMX or GPI more profitable?

Group 1 Automotive has a net margin of 2.47% compared to CarMax's net margin of 1.77%. Group 1 Automotive's return on equity of 18.09% beat CarMax's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
CarMax	1.77%	7.49%	1.69%
Group 1 Automotive	2.47%	18.09%	5.64%

Do analysts recommend KMX or GPI?

CarMax currently has a consensus price target of $87.73, suggesting a potential upside of 29.68%. Group 1 Automotive has a consensus price target of $450.33, suggesting a potential upside of 13.93%. Given CarMax's higher possible upside, analysts clearly believe CarMax is more favorable than Group 1 Automotive.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CarMax	2 Sell rating(s)	3 Hold rating(s)	8 Buy rating(s)	1 Strong Buy rating(s)	2.57
Group 1 Automotive	0 Sell rating(s)	1 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.83

Does the media favor KMX or GPI?

In the previous week, CarMax had 100 more articles in the media than Group 1 Automotive. MarketBeat recorded 108 mentions for CarMax and 8 mentions for Group 1 Automotive. Group 1 Automotive's average media sentiment score of 1.27 beat CarMax's score of 0.42 indicating that Group 1 Automotive is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
CarMax	35 Very Positive mention(s)	14 Positive mention(s)	23 Neutral mention(s)	19 Negative mention(s)	5 Very Negative mention(s)	Neutral
Group 1 Automotive	7 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do institutionals and insiders believe in KMX or GPI?

99.9% of Group 1 Automotive shares are owned by institutional investors. 1.7% of CarMax shares are owned by company insiders. Comparatively, 1.7% of Group 1 Automotive shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Does the MarketBeat Community believe in KMX or GPI?

CarMax received 244 more outperform votes than Group 1 Automotive when rated by MarketBeat users. Likewise, 63.31% of users gave CarMax an outperform vote while only 59.95% of users gave Group 1 Automotive an outperform vote.

Company	Underperform	Outperform
CarMax	Outperform Votes 711 63.31%	Underperform Votes 412 36.69%
Group 1 Automotive	Outperform Votes 467 59.95%	Underperform Votes 312 40.05%

Which has more volatility & risk, KMX or GPI?

CarMax has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Group 1 Automotive has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Which has stronger earnings and valuation, KMX or GPI?

Group 1 Automotive has lower revenue, but higher earnings than CarMax. Group 1 Automotive is trading at a lower price-to-earnings ratio than CarMax, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CarMax	$25.98B	0.40	$479.20M	$3.21	21.08
Group 1 Automotive	$19.93B	0.26	$498.10M	$36.75	10.76

Summary

CarMax beats Group 1 Automotive on 10 of the 19 factors compared between the two stocks.