CarGurus (CARG)vsCarMax Inc (KMX)
CARG
CarGurus
$35.45
+1.78%
CONSUMER CYCLICAL · Cap: $3.32B
KMX
CarMax Inc
$41.88
-0.52%
CONSUMER CYCLICAL · Cap: $6.18B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 2969% more annual revenue ($27.83B vs $906.98M). CARG leads profitability with a 17.2% profit margin vs 1.6%. KMX appears more attractively valued with a PEG of 0.66. CARG earns a higher WallStSmart Score of 67/100 (B-).
CARG
Strong Buy67
out of 100
Grade: B-
KMX
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+63.1%
Fair Value
$74.48
Current Price
$35.45
$39.03 discount
Margin of Safety
-120.8%
Fair Value
$20.74
Current Price
$41.88
$21.14 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 43 in profit
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Strong operational efficiency at 28.7%
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Areas to Watch
Trading at 9.0x book value
Distress zone — elevated risk
ROE of 7.5% — below average capital efficiency
1.6% margin — thin
Operating margin of 1.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : CARG
The strongest argument for CARG centers on Return on Equity, Altman Z-Score, P/E Ratio. Profitability is solid with margins at 17.2% and operating margin at 28.7%. PEG of 1.01 suggests the stock is reasonably priced for its growth.
Bull Case : KMX
The strongest argument for KMX centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.
Bear Case : CARG
The primary concerns for CARG are Price/Book.
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 1.6% 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 1.41 — expect wider price swings.
CARG is growing revenue faster at 5.5% — sustainability is the question.
KMX generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
CARG scores higher overall (67/100 vs 54/100), backed by strong 17.2% margins. Both earn "Strong 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.
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.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
Want to dig deeper into these stocks?