Asbury Automotive Group Inc (ABG)vsCarMax Inc (KMX)
ABG
Asbury Automotive Group Inc
$190.98
+0.44%
CONSUMER CYCLICAL · Cap: $3.72B
KMX
CarMax Inc
$52.40
+0.49%
CONSUMER CYCLICAL · Cap: $7.27B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 55% more annual revenue ($27.76B vs $17.96B). ABG leads profitability with a 3.0% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.53. ABG earns a higher WallStSmart Score of 66/100 (B-).
ABG
Strong Buy66
out of 100
Grade: B-
KMX
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.3%
Fair Value
$145.86
Current Price
$190.98
$45.12 premium
Intrinsic value data unavailable for KMX.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 47.1% YoY
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
3.0% margin — thin
Operating margin of 4.7%
Elevated debt levels
Weak financial health signals
Premium valuation, high expectations priced in
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
0.9% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : ABG
The strongest argument for ABG centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.57 suggests the stock is reasonably priced for its growth.
Bull Case : KMX
The strongest argument for KMX centers on Price/Book, PEG Ratio. PEG of 0.53 suggests the stock is reasonably priced for its growth.
Bear Case : ABG
The primary concerns for ABG are Profit Margin, Operating Margin, Debt/Equity. Thin 3.0% margins leave little buffer for downturns.
Bear Case : KMX
The primary concerns for KMX are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 3.05 is elevated, increasing financial risk. Thin 0.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.20 — expect wider price swings.
ABG is growing revenue faster at -0.9% — sustainability is the question.
ABG generates stronger free cash flow (174M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ABG scores higher overall (66/100 vs 49/100). Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Asbury Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Asbury Automotive Group, Inc. is an automobile retailer in the United States. The company is headquartered in Duluth, Georgia.
CarMax Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
CarMax is a used vehicle retailer based in the United States. It operates two business segments: CarMax Sales Operations and CarMax Auto Finance.
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