Sifting through countless of stocks in the Specialty Retail industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in CarMax, Inc. or Carvana Co. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how CarMax, Inc. and Carvana Co. compare based on key financial metrics to determine which better meets your investment needs.

About CarMax, Inc. and Carvana Co.

CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles and related products in the United States. The company operates in two segments: CarMax Sales Operations and CarMax Auto Finance. The CarMax Sales Operations segment offers customers a range of makes and models of used vehicles, including domestic, imported, and luxury vehicles, as well as hybrid and electric vehicles; used vehicle auctions; extended protection plans to customers at the time of sale; and reconditioning and vehicle repair services. The CarMax Auto Finance segment provides financing alternatives for retail customers across a range of credit spectrum and arrangements with various financial institutions. The company was founded in 1993 and is based in Richmond, Virginia.

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. The company offers vehicle acquisition, inspection and reconditioning, online search and shopping experience, financing, complementary products, logistics network and distinctive fulfillment experience, and post-sale customer support services. It also operates auction sites. Carvana Co. was founded in 2012 and is based in Tempe, Arizona.

Latest Specialty Retail and CarMax, Inc., Carvana Co. Stock News

As of January 30, 2026, CarMax, Inc. had a $6.3 billion market capitalization, compared to the Specialty Retail median of $1.0 million. CarMax, Inc.’s stock is up 15.3% in 2026, down 3.8% in the previous five trading days and down 48.03% in the past year.

Currently, CarMax, Inc.’s price-earnings ratio is 14.6. CarMax, Inc.’s trailing 12-month revenue is $27.8 billion with a 1.6% net profit margin. Year-over-year quarterly sales growth most recently was -6.7%. Analysts expect adjusted earnings to reach $2.657 per share for the current fiscal year. CarMax, Inc. does not currently pay a dividend.

As of January 30, 2026, Carvana Co. had a $56.7 billion market cap, putting it in the 94th percentile of all stocks. Carvana Co.’s stock is down 5% in 2026, down 15.3% in the previous five trading days and up 63.41% in the past year.

Currently, Carvana Co.’s price-earnings ratio is 91.2. Carvana Co.’s trailing 12-month revenue is $18.3 billion with a 3.4% net profit margin. Year-over-year quarterly sales growth most recently was 54.5%. Analysts expect adjusted earnings to reach $5.562 per share for the current fiscal year. Carvana Co. does not currently pay a dividend.

How We Compare CarMax, Inc. and Carvana Co. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at CarMax, Inc. and Carvana Co.’s stock grades to see how they measure up against one another.

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CarMax, Inc. and Carvana Co. Growth Grades

Company	Ticker	Growth
CarMax, Inc.	KMX	D
Carvana Co.	CVNA	D

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

CarMax, Inc. has a Growth Score of 29, which is Weak. Carvana Co. has a Growth Score of 27, which is Weak.

The Growth Stock Winner: No Clear Winner

Neither CarMax, Inc. or Carvana Co. has a high enough Growth Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if CarMax, Inc. or Carvana Co. is the better investment when it comes to sustainable growth.

CarMax, Inc. and Carvana Co.’s Momentum Grades

Company	Ticker	Momentum
CarMax, Inc.	KMX	F
Carvana Co.	CVNA	A

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

CarMax, Inc. has a Momentum Score of 17, which is Very Weak. Carvana Co. has a Momentum Score of 87, which is Very Strong.

The Momentum Grade Winner: Carvana Co.

As you can clearly see from the Momentum Grade breakdown above, Carvana Co. is considered to have stronger momentum compared to CarMax, Inc.. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Carvana Co. could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

CarMax, Inc. and Carvana Co.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
CarMax, Inc.	KMX	D
Carvana Co.	CVNA	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

CarMax, Inc. has a Earnings Estimate Score of 28, which is Negative. Carvana Co. has a Earnings Estimate Score of 67, which is Positive.

The Earnings Estimate Revisions Grade Winner: Carvana Co.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Carvana Co. has a better Earnings Estimate Revisions Grade than CarMax, Inc.. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Carvana Co. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other CarMax, Inc. and Carvana Co. Grades

In addition to Growth, Estimate Revisions and Momentum, A+ Investor also provides grades for Value and Quality.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether CarMax, Inc. and Carvana Co. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, CarMax, Inc. or Carvana Co. Stock?

Overall, CarMax, Inc. stock has a Growth Score of 29, Momentum Score of 17 and Estimate Revisions Score of 28.

Carvana Co. stock has a Growth Score of 27, Momentum Score of 87 and Estimate Revisions Score of 67.

Comparing CarMax, Inc. and Carvana Co.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.