DRI vs. KMX: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at DRI and KMX, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | DRI | KMX |
|---|---|---|
| Company Name | Darden Restaurants, Inc. | CarMax, Inc. |
| Country | United States | United States |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Hotels, Restaurants & Leisure | Specialty Retail |
| Market Capitalization | 22.38 billion USD | 6.76 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | May 9, 1995 | February 4, 1997 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of DRI and KMX by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | DRI | KMX |
|---|---|---|
| 5-Day Price Return | 2.01% | -21.35% |
| 13-Week Price Return | -12.67% | -33.24% |
| 26-Week Price Return | -8.24% | -40.23% |
| 52-Week Price Return | 14.19% | -41.97% |
| Month-to-Date Return | -8.01% | -26.86% |
| Year-to-Date Return | 1.97% | -45.12% |
| 10-Day Avg. Volume | 2.20M | 7.42M |
| 3-Month Avg. Volume | 1.34M | 3.70M |
| 3-Month Volatility | 22.89% | 50.08% |
| Beta | 0.74 | 1.28 |
Profitability
Return on Equity (TTM)
DRI
48.09%
Hotels, Restaurants & Leisure Industry
- Max
- 84.03%
- Q3
- 40.12%
- Median
- 17.38%
- Q1
- 7.45%
- Min
- -33.94%
In the upper quartile for the Hotels, Restaurants & Leisure industry, DRI’s Return on Equity of 48.09% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
KMX
8.36%
Specialty Retail Industry
- Max
- 64.63%
- Q3
- 37.13%
- Median
- 19.07%
- Q1
- 10.79%
- Min
- -16.66%
KMX’s Return on Equity of 8.36% is in the lower quartile for the Specialty Retail industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Net Profit Margin (TTM)
DRI
8.69%
Hotels, Restaurants & Leisure Industry
- Max
- 25.61%
- Q3
- 14.65%
- Median
- 8.66%
- Q1
- 3.36%
- Min
- -9.83%
DRI’s Net Profit Margin of 8.69% is aligned with the median group of its peers in the Hotels, Restaurants & Leisure industry. This indicates its ability to convert revenue into profit is typical for the sector.
KMX
1.98%
Specialty Retail Industry
- Max
- 21.04%
- Q3
- 10.99%
- Median
- 6.08%
- Q1
- 2.46%
- Min
- -4.37%
Falling into the lower quartile for the Specialty Retail industry, KMX’s Net Profit Margin of 1.98% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin (TTM)
DRI
11.28%
Hotels, Restaurants & Leisure Industry
- Max
- 45.80%
- Q3
- 22.44%
- Median
- 14.98%
- Q1
- 6.59%
- Min
- -15.28%
DRI’s Operating Profit Margin of 11.28% is around the midpoint for the Hotels, Restaurants & Leisure industry, indicating that its efficiency in managing core business operations is typical for the sector.
KMX
2.64%
Specialty Retail Industry
- Max
- 33.35%
- Q3
- 16.40%
- Median
- 9.28%
- Q1
- 4.05%
- Min
- -10.63%
KMX’s Operating Profit Margin of 2.64% is in the lower quartile for the Specialty Retail industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
Profitability at a Glance
| Symbol | DRI | KMX |
|---|---|---|
| Return on Equity (TTM) | 48.09% | 8.36% |
| Return on Assets (TTM) | 8.56% | 1.91% |
| Net Profit Margin (TTM) | 8.69% | 1.98% |
| Operating Profit Margin (TTM) | 11.28% | 2.64% |
| Gross Profit Margin (TTM) | 21.88% | 11.21% |
Financial Strength
Current Ratio (MRQ)
DRI
0.42
Hotels, Restaurants & Leisure Industry
- Max
- 2.73
- Q3
- 1.63
- Median
- 1.12
- Q1
- 0.73
- Min
- 0.18
DRI’s Current Ratio of 0.42 falls into the lower quartile for the Hotels, Restaurants & Leisure industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
KMX
2.46
Specialty Retail Industry
- Max
- 2.72
- Q3
- 1.81
- Median
- 1.38
- Q1
- 1.15
- Min
- 0.52
KMX’s Current Ratio of 2.46 is in the upper quartile for the Specialty Retail industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
DRI
1.62
Hotels, Restaurants & Leisure Industry
- Max
- 11.29
- Q3
- 4.71
- Median
- 1.65
- Q1
- 0.27
- Min
- 0.00
DRI’s Debt-to-Equity Ratio of 1.62 is typical for the Hotels, Restaurants & Leisure industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
KMX
3.00
Specialty Retail Industry
- Max
- 3.44
- Q3
- 1.57
- Median
- 0.60
- Q1
- 0.22
- Min
- 0.00
KMX’s leverage is in the upper quartile of the Specialty Retail industry, with a Debt-to-Equity Ratio of 3.00. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
Interest Coverage Ratio (TTM)
DRI
7.78
Hotels, Restaurants & Leisure Industry
- Max
- 21.72
- Q3
- 11.40
- Median
- 4.02
- Q1
- 1.19
- Min
- -11.84
DRI’s Interest Coverage Ratio of 7.78 is positioned comfortably within the norm for the Hotels, Restaurants & Leisure industry, indicating a standard and healthy capacity to cover its interest payments.
KMX
--
Specialty Retail Industry
- Max
- 48.12
- Q3
- 39.12
- Median
- 14.13
- Q1
- 3.63
- Min
- -36.00
Interest Coverage Ratio data for KMX is currently unavailable.
Financial Strength at a Glance
| Symbol | DRI | KMX |
|---|---|---|
| Current Ratio (MRQ) | 0.42 | 2.46 |
| Quick Ratio (MRQ) | 0.16 | 1.06 |
| Debt-to-Equity Ratio (MRQ) | 1.62 | 3.00 |
| Interest Coverage Ratio (TTM) | 7.78 | -- |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
DRI
2.98%
Hotels, Restaurants & Leisure Industry
- Max
- 6.81%
- Q3
- 2.73%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.98%, DRI offers a more attractive income stream than most of its peers in the Hotels, Restaurants & Leisure industry, signaling a strong commitment to shareholder returns.
KMX
0.00%
Specialty Retail Industry
- Max
- 6.48%
- Q3
- 2.84%
- Median
- 1.04%
- Q1
- 0.00%
- Min
- 0.00%
KMX currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
Dividend Payout Ratio (TTM)
DRI
62.74%
Hotels, Restaurants & Leisure Industry
- Max
- 128.39%
- Q3
- 61.60%
- Median
- 21.91%
- Q1
- 0.00%
- Min
- 0.00%
DRI’s Dividend Payout Ratio of 62.74% is in the upper quartile for the Hotels, Restaurants & Leisure industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
KMX
0.00%
Specialty Retail Industry
- Max
- 192.64%
- Q3
- 79.43%
- Median
- 26.55%
- Q1
- 0.00%
- Min
- 0.00%
KMX has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
Dividend at a Glance
| Symbol | DRI | KMX |
|---|---|---|
| Dividend Yield (TTM) | 2.98% | 0.00% |
| Dividend Payout Ratio (TTM) | 62.74% | 0.00% |
Valuation
Price-to-Earnings Ratio (TTM)
DRI
21.09
Hotels, Restaurants & Leisure Industry
- Max
- 56.96
- Q3
- 33.82
- Median
- 21.30
- Q1
- 15.75
- Min
- 6.06
DRI’s P/E Ratio of 21.09 is within the middle range for the Hotels, Restaurants & Leisure industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
KMX
12.66
Specialty Retail Industry
- Max
- 47.04
- Q3
- 27.74
- Median
- 23.51
- Q1
- 13.77
- Min
- 7.47
In the lower quartile for the Specialty Retail industry, KMX’s P/E Ratio of 12.66 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
DRI
1.83
Hotels, Restaurants & Leisure Industry
- Max
- 7.19
- Q3
- 3.99
- Median
- 1.93
- Q1
- 1.26
- Min
- 0.17
DRI’s P/S Ratio of 1.83 aligns with the market consensus for the Hotels, Restaurants & Leisure industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
KMX
0.25
Specialty Retail Industry
- Max
- 5.77
- Q3
- 2.79
- Median
- 1.21
- Q1
- 0.53
- Min
- 0.09
In the lower quartile for the Specialty Retail industry, KMX’s P/S Ratio of 0.25 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
DRI
10.33
Hotels, Restaurants & Leisure Industry
- Max
- 24.89
- Q3
- 11.60
- Median
- 4.91
- Q1
- 2.29
- Min
- 0.37
DRI’s P/B Ratio of 10.33 is within the conventional range for the Hotels, Restaurants & Leisure industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
KMX
1.48
Specialty Retail Industry
- Max
- 16.93
- Q3
- 7.92
- Median
- 3.98
- Q1
- 1.86
- Min
- 0.55
KMX’s P/B Ratio of 1.48 is in the lower quartile for the Specialty Retail industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
Valuation at a Glance
| Symbol | DRI | KMX |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 21.09 | 12.66 |
| Price-to-Sales Ratio (TTM) | 1.83 | 0.25 |
| Price-to-Book Ratio (MRQ) | 10.33 | 1.48 |
| Price-to-Free Cash Flow Ratio (TTM) | 21.56 | 7.90 |