Canadian Natural Resources Ltd (CNQ)vsCarMax Inc (KMX)
CNQ
Canadian Natural Resources Ltd
$44.53
-0.47%
ENERGY · Cap: $92.88B
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Canadian Natural Resources Ltd generates 40% more annual revenue ($38.76B vs $27.76B). CNQ leads profitability with a 27.9% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. CNQ earns a higher WallStSmart Score of 67/100 (B-).
CNQ
Strong Buy67
out of 100
Grade: B-
KMX
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+55.1%
Fair Value
$90.53
Current Price
$44.53
$46.00 discount
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$40.34
$229.73 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 371.8% YoY
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Keeps 28 of every $100 in revenue as profit
Reasonable price relative to book value
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
1.5% revenue growth
Expensive relative to growth rate
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 : CNQ
The strongest argument for CNQ centers on P/E Ratio, EPS Growth, Market Cap. Profitability is solid with margins at 27.9% and operating margin at 19.6%.
Bull Case : KMX
The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.38 suggests the stock is reasonably priced for its growth.
Bear Case : CNQ
The primary concerns for CNQ are Revenue Growth, PEG Ratio.
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 1.18 — expect wider price swings.
CNQ is growing revenue faster at 1.5% — sustainability is the question.
Monitor OIL & GAS E&P industry trends, competitive dynamics, and regulatory changes.
Bottom Line
CNQ scores higher overall (67/100 vs 52/100), backed by strong 27.9% margins. KMX offers better value entry with a 83.0% margin of safety. 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.
Canadian Natural Resources Ltd
ENERGY · OIL & GAS E&P · USA
Canadian Natural Resources Limited acquires, explores, develops, produces, markets and sells crude oil, natural gas and natural gas liquids (NGL). The company is headquartered in Calgary, Canada.
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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