CarMax vs Automax Motors Which Is More Attractive?

CarMax and Automax Motors are two well-known companies in the automotive industry that offer used cars to customers. Both companies have a strong presence in the market and have seen significant growth in their stock prices over the years. CarMax is known for its large selection of vehicles and excellent customer service, while Automax Motors prides itself on offering quality cars at competitive prices. Investors are closely watching both companies as they continue to expand and innovate in the ever-evolving automotive market.

CarMax or Automax Motors?

When comparing CarMax and Automax Motors, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between CarMax and Automax Motors.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. CarMax has a dividend yield of -%, while Automax Motors has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. CarMax reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Automax Motors reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with CarMax P/E ratio at 32.19 and Automax Motors's P/E ratio at -0.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. CarMax P/B ratio is 2.17 while Automax Motors's P/B ratio is 0.09.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, CarMax has seen a 5-year revenue growth of 0.99%, while Automax Motors's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with CarMax's ROE at 6.83% and Automax Motors's ROE at -52.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $85.23 for CarMax and ₪18.30 for Automax Motors. Over the past year, CarMax's prices ranged from $65.38 to $88.22, with a yearly change of 34.93%. Automax Motors's prices fluctuated between ₪16.00 and ₪46.50, with a yearly change of 190.62%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.