CarMax (NYSE: KMX) is a giant in the used car market, but the industry remains highly fragmented market with around 18,000 dealers. That has left an opening for (NYSE: CVNA) to quickly build a business that relies heavily on online sales. Carvana has made a lot of headlines thanks to its rapid growth, but CarMax is the better company. Here's why.

In its fiscal 2025 first quarter, CarMax reported earnings of $0.97 per share, down 34% year over year, though last year's figure benefited from a $0.28 per share one-time legal settlement. On an adjusted basis, earnings fell 16% as the company sold 5.3% fewer vehicles. On the retail side, same-store sales were down 3.8%.

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Source Fool.com