Asbury Automotive Group Inc (ABG)vsCarMax Inc (KMX)
ABG
Asbury Automotive Group Inc
$202.65
-2.12%
CONSUMER CYCLICAL · Cap: $3.58B
KMX
CarMax Inc
$51.48
-2.13%
CONSUMER CYCLICAL · Cap: $7.97B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 67% more annual revenue ($29.46B vs $17.59B). ABG leads profitability with a 2.7% profit margin vs 1.0%. ABG appears more attractively valued with a PEG of 0.49. KMX earns a higher WallStSmart Score of 65/100 (B-).
ABG
Buy56
out of 100
Grade: C
KMX
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-55.8%
Fair Value
$149.06
Current Price
$202.65
$53.59 premium
Intrinsic value data unavailable for KMX.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Reasonable price relative to book value
Earnings expanding 81.6% YoY
Growing faster than its price suggests
17.7% revenue growth
Areas to Watch
2.7% margin — thin
Operating margin of 4.7%
Elevated debt levels
Weak financial health signals
Moderate valuation
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
1.0% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : ABG
The strongest argument for ABG centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.49 suggests the stock is reasonably priced for its growth.
Bull Case : KMX
The strongest argument for KMX centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 17.7% demonstrates continued momentum. PEG of 0.68 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 2.7% 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 2.83 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
ABG profiles as a value stock while KMX is a growth play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.23 — expect wider price swings.
KMX is growing revenue faster at 17.7% — sustainability is the question.
KMX generates stronger free cash flow (806M), providing more financial flexibility.
Bottom Line
KMX scores higher overall (65/100 vs 56/100) and 17.7% revenue growth. Both earn "Strong Buy" and "Buy" 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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