The Gap, Inc. (GAP) vs CarMax, Inc. (KMX)
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 September 13, 2026. Differences are shown without an overall score or investment verdict.
GAP
The Gap, Inc.
$21.82Consumer CyclicalDelayed quote: Sep 25, 2026, 4:00 PM EDT
KMX
CarMax, Inc.
$57.21Consumer CyclicalDelayed quote: Sep 25, 2026, 4:00 PM EDT
Total return — GAP vs KMX
growth of $100 · dividends reinvested · last 10yGAP +28.3% (+2.5%/yr)KMX +7.8% (+0.8%/yr)GAP compounded faster over this window
GAP KMX
GAP vs KMX: by the numbers
- •KMX is the larger company ($8.12B vs $7.85B market cap).
- •GAP trades at the lower trailing earnings multiple (6.51 vs 35.53 P/E), one valuation lens rather than an overall verdict.
- •GAP converts more revenue to profit (8.14% vs 0.84% net margin).
- •KMX grew revenue faster over the past five years (2.39% vs 2.17% CAGR).
- •GAP pays a dividend (3.16% yield), while KMX has no payments in the available dividend history.
Metrics side by side
Valuation
| Metric | GAP | KMX |
|---|---|---|
| P/E ratio | 6.51 | 35.53 |
| Forward P/E | 9.06 | 21.13 |
| P/S ratio | 0.51 | 0.31 |
| P/B ratio | 1.99 | 1.33 |
| EV / EBITDA | 5.22 | N/A |
| FCF yield | 14.13% | 12.25% |
Profitability
| Metric | GAP | KMX |
|---|---|---|
| Gross margin | 43.26% | 10.24% |
| Operating margin | 10.99% | -1.85% |
| Net margin | 8.14% | 0.84% |
| ROE | 31.56% | 3.64% |
| ROIC | 12.80% | -1.21% |
Dividends
| Metric | GAP | KMX |
|---|---|---|
| Dividend yield | 3.16% | N/A |
| Payout ratio | 20.30% | N/A |
Growth (annualized)
| Metric | GAP | KMX |
|---|---|---|
| Revenue CAGR (5Y) | 2.17% | 2.39% |
| EPS CAGR (5Y) | 15.25% | -18.18% |
| FCF CAGR (5Y) | 10.85% | 13.85% |
| Total return CAGR (5Y) | 1.84% | -14.54% |
Frequently asked
- Which has the lower trailing P/E, GAP or KMX?
- GAP has the lower trailing P/E: GAP trades at 6.51 and KMX at 35.53. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, GAP or KMX?
- Over the past five years, KMX grew revenue faster — GAP at a 2.17% CAGR versus KMX at 2.39%.
- Does GAP or KMX pay a bigger dividend?
- GAP pays a dividend (3.16% yield), while KMX has no payments in the available dividend history.
- Is GAP or KMX more profitable?
- GAP runs the higher net margin — GAP at 8.14% versus KMX at 0.84%.
- How have GAP and KMX total returns compared?
- Over the past 10 years, GAP delivered 2.68% and KMX delivered 1.05% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Gap P/E ratioCarMax P/E ratioGap 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 September 13, 2026.