WallStSmart

Asbury Automotive Group Inc (ABG)vsCarMax Inc (KMX)

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Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 57% more annual revenue ($28.20B vs $17.97B). ABG leads profitability with a 2.8% profit margin vs 0.8%. KMX appears more attractively valued with a PEG of 0.56. ABG earns a higher WallStSmart Score of 56/100 (C).

ABG

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 5.5Value: 6.7Quality: 4.5
Piotroski: 3/9Altman Z: 2.50

KMX

Buy

53

out of 100

Grade: C-

Growth: 3.3Profit: 4.0Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABGSignificantly Overvalued (-58.7%)

Margin of Safety

-58.7%

Fair Value

$146.35

Current Price

$214.32

$67.97 premium

UndervaluedFair: $146.35Overvalued

Intrinsic value data unavailable for KMX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABG3 strengths · Avg: 9.3/10
P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.668/10

Growing faster than its price suggests

KMX2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.568/10

Growing faster than its price suggests

Areas to Watch

ABG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Debt/EquityHealth
1.383/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

KMX4 concerns · Avg: 3.5/10
P/E RatioValuation
35.6x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Profit MarginProfitability
0.8%3/10

0.8% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : ABG

The strongest argument for ABG centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.66 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 0.56 suggests the stock is reasonably priced for its growth.

Bear Case : ABG

The primary concerns for ABG are Revenue Growth, Profit Margin, Debt/Equity. Thin 2.8% 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 0.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

KMX carries more volatility with a beta of 1.16 — expect wider price swings.

KMX is growing revenue faster at 5.5% — 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 (56/100 vs 53/100). Both earn "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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