CarMax (KMX) Competitors

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

Do institutionals & insiders hold more shares of PAG or KMX?

77.1% of Penske Automotive Group shares are held by institutional investors. 51.7% of Penske Automotive Group shares are held by insiders. Comparatively, 1.7% of CarMax shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Which has more volatility and risk, PAG or KMX?

Penske Automotive Group has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, CarMax has a beta of 1.76, indicating that its stock price is 76% more volatile than the S&P 500.

Does the MarketBeat Community favor PAG or KMX?

CarMax received 352 more outperform votes than Penske Automotive Group when rated by MarketBeat users. Likewise, 63.20% of users gave CarMax an outperform vote while only 60.27% of users gave Penske Automotive Group an outperform vote.

Company	Underperform	Outperform
Penske Automotive Group	Outperform Votes 352 60.27%	Underperform Votes 232 39.73%
CarMax	Outperform Votes 704 63.20%	Underperform Votes 410 36.80%

Does the media refer more to PAG or KMX?

In the previous week, CarMax had 10 more articles in the media than Penske Automotive Group. MarketBeat recorded 17 mentions for CarMax and 7 mentions for Penske Automotive Group. Penske Automotive Group's average media sentiment score of 1.54 beat CarMax's score of 1.36 indicating that Penske Automotive Group is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Penske Automotive Group	5 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
CarMax	12 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is PAG or KMX more profitable?

Penske Automotive Group has a net margin of 3.02% compared to CarMax's net margin of 1.77%. Penske Automotive Group's return on equity of 18.05% beat CarMax's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Penske Automotive Group	3.02%	18.05%	5.50%
CarMax	1.77%	7.49%	1.69%

Do analysts rate PAG or KMX?

Penske Automotive Group presently has a consensus target price of $172.50, suggesting a potential upside of 11.79%. CarMax has a consensus target price of $90.45, suggesting a potential upside of 23.05%. Given CarMax's higher possible upside, analysts clearly believe CarMax is more favorable than Penske Automotive Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penske Automotive Group	1 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	0 Strong Buy rating(s)	2.40
CarMax	2 Sell rating(s)	4 Hold rating(s)	7 Buy rating(s)	0 Strong Buy rating(s)	2.38

Which has preferable valuation and earnings, PAG or KMX?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penske Automotive Group	$30.46B	0.34	$918.90M	$13.75	11.22
CarMax	$25.98B	0.44	$479.20M	$2.95	24.92

Summary

Penske Automotive Group beats CarMax on 10 of the 18 factors compared between the two stocks.