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 August 11, 2026. Differences are shown without an overall score or investment verdict.
GAP
The Gap, Inc.
$20.96Consumer CyclicalDelayed quote: Aug 11, 2026, 4:00 PM EDT
KMX
CarMax, Inc.
$58.18Consumer CyclicalDelayed quote: Aug 11, 2026, 4:00 PM EDT
Total return — GAP vs KMX
growth of $100 · dividends reinvested · last 10yGAP +18.7% (+1.7%/yr)KMX -0.7% (-0.1%/yr)GAP compounded faster over this window
GAP KMX
GAP vs KMX: by the numbers
- •KMX is the larger company ($8.26B vs $7.55B market cap).
- •GAP trades at the lower trailing earnings multiple (8.47 vs 36.51 P/E), one valuation lens rather than an overall verdict.
- •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 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 | 8.47 | 36.51 |
| Forward P/E | 9.99 | 21.82 |
| P/S ratio | 0.53 | 0.32 |
| P/B ratio | 2.22 | 1.37 |
| EV / EBITDA | 6.44 | N/A |
| FCF yield | 15.70% | 11.90% |
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 | 3.16% | N/A |
| Payout ratio | 31.19% | N/A |
Growth (annualized)
| Metric | GAP | KMX |
|---|---|---|
| Revenue CAGR (5Y) | 2.17% | 2.39% |
| EPS CAGR (5Y) | 15.25% | -18.18% |
| FCF CAGR (5Y) | 2.60% | 13.85% |
| Total return CAGR (5Y) | -2.91% | -15.36% |
Frequently asked
- Which has the lower trailing P/E, GAP or KMX?
- GAP has the lower trailing P/E: GAP trades at 8.47 and KMX at 36.51. 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 6.25% versus KMX at 0.84%.
- How have GAP and KMX total returns compared?
- Over the past 10 years, GAP delivered 2.39% and KMX delivered 0.07% 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 August 11, 2026.