CarMax (NYSE:KMX) and MarineMax (NYSE:HZO) Head-To-Head Comparison
by Michael Walen · The Markets DailyMarineMax (NYSE:HZO – Get Free Report) and CarMax (NYSE:KMX – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Risk and Volatility
MarineMax has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, CarMax has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Insider and Institutional Ownership
92.8% of MarineMax shares are owned by institutional investors. 3.2% of MarineMax shares are owned by company insiders. Comparatively, 1.0% of CarMax shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares MarineMax and CarMax”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MarineMax | $2.31 billion | 0.50 | -$31.63 million | $0.14 | 372.89 |
| CarMax | $25.88 billion | 0.34 | $247.29 million | $1.53 | 40.18 |
CarMax has higher revenue and earnings than MarineMax. CarMax is trading at a lower price-to-earnings ratio than MarineMax, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for MarineMax and CarMax, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MarineMax | 0 | 7 | 1 | 0 | 2.12 |
| CarMax | 3 | 14 | 2 | 1 | 2.05 |
MarineMax presently has a consensus price target of $43.00, indicating a potential downside of 17.63%. CarMax has a consensus price target of $51.00, indicating a potential downside of 17.03%. Given CarMax’s higher probable upside, analysts plainly believe CarMax is more favorable than MarineMax.
Profitability
This table compares MarineMax and CarMax’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MarineMax | 0.18% | 1.51% | 0.59% |
| CarMax | 0.84% | 6.64% | 1.53% |
Summary
CarMax beats MarineMax on 9 of the 15 factors compared between the two stocks.
About MarineMax
MarineMax, Inc. operates as a recreational boat and yacht retailer and superyacht services company in the United States. It operates in two segments, Retail Operations and Product Manufacturing. The company sells new and used recreational boats, including pleasure and fishing boats, mega-yachts, yachts, sport cruisers, motor yachts, e-power yachts, pontoon boats, ski boats, jet boats, and other recreational boats. It also offers marine parts and accessories comprising marine electronics; dock and anchoring products that include boat fenders, lines, and anchors; boat covers; trailer parts; water sport accessories, which comprise tubes, lines, wakeboards, and skis; engine parts; oils; lubricants; steering and control systems; corrosion control products and service products; high-performance accessories, including propellers and instruments; and a line of boating accessories, such as life jackets, inflatables, and water sports equipment. In addition, the company provides novelty items, such as shirts, caps, and license plates; marine engines and equipment; maintenance, repair, and slip and storage services; and boat or yacht brokerage services, as well as yacht charters and power catamarans. Further, it offers new or used boat finance services; arranges insurance coverage, including boat property, disability, undercoating, gel sealant, fabric protection, trailer tire and wheel protection, and casualty insurance coverage; and manufactures and sells sport yachts and yachts. Additionally, the company operates MarineMax vacations in Tortola and British Virgin Islands. It also markets and sells its products through offsite locations and print catalog. MarineMax, Inc. was incorporated in 1998 and is based in Clearwater, Florida.
About CarMax
CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. It operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.