WallStSmart

ACV Auctions Inc. (ACVA)vsCarMax Inc (KMX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 3453% more annual revenue ($27.76B vs $781.10M). KMX leads profitability with a 0.9% profit margin vs -8.0%. KMX earns a higher WallStSmart Score of 49/100 (D+).

ACVA

Hold

37

out of 100

Grade: F

Growth: 6.7Profit: 2.0Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: 0.47

KMX

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 5.7Quality: 7.0
Piotroski: 4/9Altman Z: 1.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACVAUndervalued (+57.9%)

Margin of Safety

+57.9%

Fair Value

$17.12

Current Price

$5.66

$11.46 discount

UndervaluedFair: $17.12Overvalued

Intrinsic value data unavailable for KMX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACVA1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

KMX2 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

PEG RatioValuation
0.538/10

Growing faster than its price suggests

Areas to Watch

ACVA4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.15B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-14.4%2/10

ROE of -14.4% — below average capital efficiency

Altman Z-ScoreHealth
0.472/10

Distress zone — elevated risk

KMX4 concerns · Avg: 3.5/10
P/E RatioValuation
30.5x4/10

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
0.9%3/10

0.9% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : ACVA

The strongest argument for ACVA centers on Price/Book. Revenue growth of 11.8% demonstrates continued momentum.

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 : ACVA

The primary concerns for ACVA are EPS Growth, Market Cap, Return on Equity.

Bear Case : KMX

The primary concerns for KMX are P/E Ratio, Altman Z-Score, Return on Equity. Thin 0.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACVA profiles as a turnaround stock while KMX is a value play — different risk/reward profiles.

ACVA carries more volatility with a beta of 1.78 — expect wider price swings.

ACVA is growing revenue faster at 11.8% — sustainability is the question.

ACVA generates stronger free cash flow (75M), providing more financial flexibility.

Bottom Line

KMX scores higher overall (49/100 vs 37/100). ACVA offers better value entry with a 57.9% margin of safety. Both earn "Hold" 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.

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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