CarGurus (CARG)vsCarMax Inc (KMX)
CARG
CarGurus
$27.42
+0.18%
CONSUMER CYCLICAL · Cap: $2.45B
KMX
CarMax Inc
$47.15
+0.49%
CONSUMER CYCLICAL · Cap: $7.27B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 2858% more annual revenue ($27.76B vs $938.30M). CARG leads profitability with a 15.9% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.53. CARG earns a higher WallStSmart Score of 65/100 (C+).
CARG
Buy65
out of 100
Grade: C+
KMX
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+22.6%
Fair Value
$35.55
Current Price
$27.42
$8.13 discount
Intrinsic value data unavailable for KMX.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 63 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 24.5%
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Trading at 10.4x book value
Earnings declined 8.4%
Premium valuation, high expectations priced in
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
0.9% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : CARG
The strongest argument for CARG centers on Return on Equity, Altman Z-Score, PEG Ratio. Profitability is solid with margins at 15.9% and operating margin at 24.5%. Revenue growth of 14.8% 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 : CARG
The primary concerns for CARG are Price/Book, EPS Growth.
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
CARG profiles as a mature stock while KMX is a value play — different risk/reward profiles.
CARG carries more volatility with a beta of 1.21 — expect wider price swings.
CARG is growing revenue faster at 14.8% — sustainability is the question.
CARG generates stronger free cash flow (69M), providing more financial flexibility.
Bottom Line
CARG scores higher overall (65/100 vs 49/100), backed by strong 15.9% margins and 14.8% revenue growth. Both earn "Buy" 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.
CarGurus
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
CarGurus, Inc. operates an online automotive marketplace that connects buyers and sellers of new and used cars in the United States and internationally. The company is headquartered in Cambridge, Massachusetts.
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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