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).
Total return — GAP vs KMX
growth of $100 · last 29yGAP +136.1%KMX +399.5%KMX compounded faster
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 4It depends on what you're optimizing for:
ValueGAP(lower P/E)
GrowthKMX(faster 5Y revenue CAGR)
QualityGAP(higher ROIC)
Metrics side by side
Valuation
| Metric | GAP | KMX |
|---|---|---|
| P/E ratio | 7.96● | 32.77 |
| Forward P/E | 9.39● | 19.58 |
| P/S ratio | 0.50 | 0.28● |
| P/B ratio | 2.09 | 1.23● |
| PEG ratio | 0.52 | — |
| EV / EBITDA | 6.17 | — |
| FCF yield | 16.72%● | 13.26% |
Profitability
| Metric | GAP | KMX |
|---|---|---|
| Gross margin | 40.50%● | 10.24% |
| Operating margin | 8.44%● | -1.85% |
| Net margin | 6.25%● | 0.84% |
| ROE | 26.32%● | 3.64% |
| ROIC | 8.06%● | -1.10% |
Dividends
| Metric | GAP | KMX |
|---|---|---|
| Dividend yield | 3.46% | — |
| Payout ratio | 32.11% | — |
Growth (annualized)
| Metric | GAP | KMX |
|---|---|---|
| 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.
Go deeper
Dig into the metrics
Gap P/E ratioCarMax P/E ratioGap dividend yieldCarMax dividend yieldGap ROECarMax ROEGap operating marginCarMax operating marginGap revenue growthCarMax revenue growthGap free cash flowCarMax free cash flow
Gap & CarMax appear in these rankings
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.