ACV Auctions Inc. (ACVA)vsCarMax Inc (KMX)
ACVA
ACV Auctions Inc.
$10.50
0.00%
CONSUMER CYCLICAL · Cap: $1.78B
KMX
CarMax Inc
$53.99
+0.19%
CONSUMER CYCLICAL · Cap: $7.57B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 3576% more annual revenue ($29.46B vs $801.34M). KMX leads profitability with a 1.0% profit margin vs -7.9%. KMX earns a higher WallStSmart Score of 65/100 (B-).
ACVA
Avoid32
out of 100
Grade: F
KMX
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.1%
Fair Value
$16.78
Current Price
$10.50
$6.28 discount
Intrinsic value data unavailable for KMX.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Reasonable price relative to book value
Earnings expanding 81.6% YoY
Growing faster than its price suggests
17.7% revenue growth
Areas to Watch
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -14.4% — below average capital efficiency
Negative free cash flow — burning cash
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
1.0% margin — thin
Operating margin of 2.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : ACVA
Revenue growth of 10.4% demonstrates continued momentum.
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 0.61 suggests the stock is reasonably priced for its growth.
Bear Case : ACVA
The primary concerns for ACVA are EPS Growth, Market Cap, Return on Equity.
Bear Case : KMX
The primary concerns for KMX are Altman Z-Score, Return on Equity, Profit Margin. Debt-to-equity of 2.83 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
ACVA profiles as a turnaround stock while KMX is a growth play — different risk/reward profiles.
ACVA carries more volatility with a beta of 1.76 — 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 32/100) and 17.7% revenue growth. ACVA offers better value entry with a 57.1% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
ACV Auctions Inc.
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
ACV Auctions, Inc., operates a digital marketplace that connects buyers and sellers for online wholesale vehicle auctions. The company is headquartered in Buffalo, New York.
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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