The Gap, Inc. (GAP) vs CarMax, Inc. (KMX)

GAP leads on 10 of 14 compared metrics.

A side-by-side comparison of The Gap, Inc. and CarMax, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 27, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

Compare

Total return — GAP vs KMX

growth of $100 · last 29y
GAP +136.1%KMX +399.5%KMX compounded faster
05001k2kStart $10020022007201220172022$236$500
GAP KMX

GAP vs KMX: by the numbers

  • KMX is the larger company ($7.49B vs $7.28B market cap).
  • GAP trades at the lower earnings multiple (7.96 vs 32.77 P/E).
  • GAP converts more revenue to profit (6.25% vs 0.84% net margin).
  • KMX grew revenue faster over the past five years (2.39% vs -0.36% CAGR).
  • GAP pays a dividend (3.46% yield) while KMX does not currently pay one.

Which is better, GAP or KMX?

Metric tally: GAP 10 · KMX 4

It depends on what you're optimizing for:

ValueGAP(lower P/E)
GrowthKMX(faster 5Y revenue CAGR)
QualityGAP(higher ROIC)

Metrics side by side

Valuation

MetricGAPKMX
P/E ratio7.9632.77
Forward P/E9.3919.58
P/S ratio0.500.28
P/B ratio2.091.23
PEG ratio0.52
EV / EBITDA6.17
FCF yield16.72%13.26%

Profitability

MetricGAPKMX
Gross margin40.50%10.24%
Operating margin8.44%-1.85%
Net margin6.25%0.84%
ROE26.32%3.64%
ROIC8.06%-1.10%

Dividends

MetricGAPKMX
Dividend yield3.46%
Payout ratio32.11%

Growth (annualized)

MetricGAPKMX
Revenue CAGR (5Y)-0.36%2.39%
EPS CAGR (5Y)15.25%-18.18%
FCF CAGR (5Y)2.60%13.85%
Total return CAGR (5Y)-6.40%-16.16%

Frequently asked

Which is better, GAP or KMX?
It depends on your goal. value: GAP (lower P/E); growth: KMX (faster 5Y revenue CAGR); quality: GAP (higher ROIC). Across all compared metrics, GAP leads 10 to 4.
Is GAP or KMX cheaper?
On trailing earnings, GAP is cheaper: GAP trades at a 7.96 P/E and KMX at 32.77.
Which has grown faster, GAP or KMX?
Over the past five years, KMX grew revenue faster — GAP at a -0.36% CAGR versus KMX at 2.39%.
Does GAP or KMX pay a bigger dividend?
GAP pays a dividend (3.46% yield) while KMX does not currently pay one.
Is GAP or KMX more profitable?
GAP runs the higher net margin — GAP at 6.25% versus KMX at 0.84%.
Which has been the better investment, GAP or KMX?
Over the past 10-year, GAP delivered the higher annualized total return — GAP at 3.44% versus KMX at 1.31%. Past performance doesn't predict future results.

Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 27, 2026.