AutoNation Inc (AN)vsCarMax Inc (KMX)
AN
AutoNation Inc
$202.28
-0.19%
CONSUMER CYCLICAL · Cap: $7.21B
KMX
CarMax Inc
$37.25
+1.00%
CONSUMER CYCLICAL · Cap: $5.46B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 0% more annual revenue ($27.76B vs $27.63B). AN leads profitability with a 2.4% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.40. AN earns a higher WallStSmart Score of 55/100 (C).
AN
Buy55
out of 100
Grade: C
KMX
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.1%
Fair Value
$239.19
Current Price
$202.28
$36.91 discount
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$37.25
$232.82 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Growing faster than its price suggests
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
1.3% earnings growth
2.4% margin — thin
Operating margin of 4.0%
Weak financial health signals
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : AN
The strongest argument for AN centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 0.78 suggests the stock is reasonably priced for its growth.
Bull Case : KMX
The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.40 suggests the stock is reasonably priced for its growth.
Bear Case : AN
The primary concerns for AN are EPS Growth, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.
Bear Case : KMX
The primary concerns for KMX are Altman Z-Score, Return on Equity, Profit Margin. Debt-to-equity of 2.75 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 1.30 — expect wider price swings.
KMX is growing revenue faster at -1.2% — sustainability is the question.
AN generates stronger free cash flow (-34M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AN scores higher overall (55/100 vs 52/100). KMX offers better value entry with a 83.0% margin of safety. 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.
AutoNation Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.
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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