Copart, Inc. (CPRT): Let’s Follow Insiders Into This Vehicle Marketing Stock

CarMax has the highest valuation among the three companies. CarMax is trading at $48.20 per share, with a total market cap of around $10.8 billion. The market values CarMax quite expensively at 19.5 times its trailing EBITDA. Recently, the company reported impressive results for fiscal year 2013. Its operating revenue experienced a year-over-year growth of 10% to $10.96 billion, along with the 5% growth in comparable store sales. Net income came in at $434.3 million, 5% higher than net earnings last year. CarMax has already planned for expansion in the next year, intending to open 10 to 15 new superstores in different states including Georgia, Maryland, Pennsylvania and Missouri in each of the next two fiscal years. In fiscal 2014, estimated capital expenditures should stay around $300 million.

Among the three companies, KAR might be the favorite stock for income investors with its juicy dividend yield at 3.3%, while both CarMax and Copart, Inc. (NASDAQ:CPRT) have not paid any dividends yet. However, in terms of profitability, Copart is the most outstanding with the highest operating margin at 29.4%. KAR ranked second with 13.4% operating margin, whereas the operating margin of CarMax is the lowest, at 6.5%.

My Foolish take

Indeed, Copart, Inc. (NASDAQ:CPRT) had quite a reasonable valuation, strong balance sheet, good growth and recent insider buying. It is also the most profitable company among its peers and it has generated consistent positive cash flow. Consequently, Copart could be a decent stock for investors at its current price.

The article Let’s Follow Insiders Into This Vehicle Marketing Stock originally appeared on Fool.com.

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