Carvana vs CarMax
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KIRAβs take AI analyst
I put Carvana and CarMax side by side, using each oneβs latest annual report. Here is what stands out:
- CarMax is the larger business, with $25.9B of revenue in fiscal 2026 against $20.3B for Carvana.
- Carvana grew revenue faster (48.6%, against β1.8%).
- Carvana earned a higher return on the capital invested in it (24.6%, against 1.3%).
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Carvana
CVNA
7/9
Revenue growth5-year growthGross marginNet marginReturn on capitalReturn on equityPiotroski F-score
CarMax
KMX
2/9
FCF marginShare count change
Side by side
Best in the row
| Latest fiscal year | CVNA FY25 | KMX FY26 |
|---|---|---|
| Size | ||
| Market cap | $42.8B | $7.3B |
| Revenue | $20.3B | $25.9B |
| Free cash flow | $889M | $1.2B |
| Net income | $1.4B | $247M |
| Growth | ||
| Revenue growth | 48.6% | β1.8% |
| 5-year growth | 29.5% | 6.4% |
| Share count change | 69.6% | β5.4% |
| Profitability | ||
| Gross margin | 20.6% | 10.8% |
| Operating margin | 9.3% | β |
| Net margin | 6.9% | 1.0% |
| FCF margin | 4.4% | 4.8% |
| Return on capital | 24.6% | 1.3% |
| Return on equity | 59.9% | 4.1% |
| Balance sheet | ||
| Net debt | $2.7B | $17.3B |
| Net debt / EBITDA | β | 20.6x |
| Dividends and buybacks | $0.0M | $643M |
| Valuation & quality | ||
| P/E | β | 24.3x |
| Piotroski F-score | 6 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.