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

GPS 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 28, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

Compare

Total return — GPS vs KMX

growth of $100 · last 28y
GPS +132.5%KMX +631.0%KMX compounded faster
05001k2kStart $10020022007201220172022$233$731
GPS KMX

GPS vs KMX: by the numbers

  • GPS is the larger company ($9.21B vs $7.49B market cap).
  • GPS trades at the lower earnings multiple (9.98 vs 32.77 P/E).
  • GPS 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).

Which is better, GPS or KMX?

Metric tally: GPS 10 · KMX 4

It depends on what you're optimizing for:

ValueGPS(lower P/E)
GrowthKMX(faster 5Y revenue CAGR)
QualityGPS(higher ROIC)

Metrics side by side

Valuation

MetricGPSKMX
P/E ratio9.9832.77
Forward P/E10.4719.58
P/S ratio0.510.28
P/B ratio2.661.23
PEG ratio0.14
EV / EBITDA7.39
FCF yield15.29%13.26%

Profitability

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

Growth (annualized)

MetricGPSKMX
Revenue CAGR (5Y)-0.36%2.39%
EPS CAGR (5Y)15.35%-18.18%
FCF CAGR (5Y)2.60%13.85%
Total return CAGR (5Y)6.01%-16.16%

Frequently asked

Which is better, GPS or KMX?
It depends on your goal. value: GPS (lower P/E); growth: KMX (faster 5Y revenue CAGR); quality: GPS (higher ROIC). Across all compared metrics, GPS leads 10 to 4.
Is GPS or KMX cheaper?
On trailing earnings, GPS is cheaper: GPS trades at a 9.98 P/E and KMX at 32.77.
Which has grown faster, GPS or KMX?
Over the past five years, KMX grew revenue faster — GPS at a -0.36% CAGR versus KMX at 2.39%.
Is GPS or KMX more profitable?
GPS runs the higher net margin — GPS at 6.25% versus KMX at 0.84%.
Which has been the better investment, GPS or KMX?
Over the past 10-year, KMX delivered the higher annualized total return — GPS at -4.23% 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 28, 2026.