TrueCar vs CarMax Which Is Stronger?

TrueCar and CarMax are two well-known companies in the automotive industry, but they cater to different markets. TrueCar operates an online platform that connects car buyers with dealers, while CarMax is a chain of physical dealerships that sell new and used vehicles. Both companies have seen fluctuations in their stock prices over the years, with TrueCar focusing on technology-driven solutions and CarMax emphasizing customer service. Investors looking to bet on the future of the automotive industry may find these two stocks worth considering.

TrueCar or CarMax?

When comparing TrueCar and CarMax, 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 TrueCar and CarMax.

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. TrueCar has a dividend yield of 0%, while CarMax has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TrueCar reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, CarMax 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 TrueCar P/E ratio at 0.00 and CarMax's P/E ratio at 32.48. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TrueCar P/B ratio is 0.00 while CarMax's P/B ratio is 2.19.

Growth Investors:

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

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $0.00 for TrueCar and $86.57 for CarMax. Over the past year, TrueCar's prices ranged from $0.00 to $0.00, with a yearly change of 0.00%. CarMax's prices fluctuated between $65.83 and $88.22, with a yearly change of 34.01%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.