KMX vs LAD: CarMax and Lithia Motors compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- CarMax is the larger company, worth $7.5B, close to Lithia Motors's $6.7B.
- CarMax grew revenue faster over the last year (+19.5% vs +2.2%).
- On earnings, Lithia Motors is the cheaper stock (10.2x vs 31.5x).
- Lithia Motors's price assumes faster free cash flow growth: about 63% a year, against -11% for CarMax (reverse DCF).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | KMX | LAD |
|---|---|---|
| Market cap | $7.5B | $6.7B |
| Share price | $52.61 | $290.24 |
| Revenue (last fiscal year) | $25.9B | $37.6B |
| Free cash flow (last fiscal year) | $1.2B | $6M |
| Revenue growth, last year | +19.5% | +2.2% |
| Revenue growth per year, last 5 fiscal years | -5.1% | +13.3% |
| Operating margin | — | 4.1% |
| Net margin | 1.1% | 1.9% |
| Return on equity | 4.6% | 11.2% |
| P/E (trailing) | 31.5x | 10.2x |
| Price / free cash flow | 6.05x | 34.7x |
| EV / EBITDA | 27.3x | 14.1x |
| FCF growth the price implies | -11.2% | 63.3% |
| Dividend yield | — | 0.77% |
| Debt / equity | 3.13x | 3.10x |
| Fundamental grade | C | D |
| Superinvestors holding it | 9 | 8 |
| Insider purchases, last 12 months | 0 | 0 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
CarMax
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2022 | $31.9B | -$2.9B | — |
| 2023 | $29.7B | $861M | — |
| 2024 | $26.5B | -$7M | — |
| 2025 | $26.4B | $156M | — |
| 2026 | $25.9B | $1.2B | — |
Lithia Motors
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $22.8B | $1.5B | 7.3% |
| 2022 | $28.2B | -$913M | 6.9% |
| 2023 | $31.0B | -$703M | 5.5% |
| 2024 | $36.2B | $74M | 4.3% |
| 2025 | $37.6B | $6M | 4.2% |
Where the revenue comes from
CarMax · by segments, 2024
CarMax Sales Operations$26.4B99%
Other Segments$136M1%
Lithia Motors · by segments, 2021
Import$9.7B43%
Domestic$7.0B31%
Luxury$6.1B27%
Compare them in fullFifteen years of statements, quarterly results, DCF and IRR models, and any number of peers side by side.
Open KMX in InvestinglyQuestions
Which is bigger, CarMax or Lithia Motors?
CarMax (KMX), at $7.5B against $6.7B.
Is KMX or LAD cheaper?
By trailing P/E, Lithia Motors (10.2x) is cheaper than CarMax (31.5x). A lower multiple can also mean the market expects less growth.
Which grows faster, KMX or LAD?
CarMax: revenue grew +19.5% over the last year, against +2.2%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.