WallStSmart

Americas Car-Mart Inc (CRMT)vsCarMax Inc (KMX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 1967% more annual revenue ($27.76B vs $1.34B). KMX leads profitability with a 0.9% profit margin vs -7.0%. KMX appears more attractively valued with a PEG of 0.53. CRMT earns a higher WallStSmart Score of 55/100 (C-).

CRMT

Buy

55

out of 100

Grade: C-

Growth: 5.3Profit: 2.5Value: 7.7Quality: 5.5
Piotroski: 4/9Altman Z: 2.76

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

CRMTUndervalued (+71.6%)

Margin of Safety

+71.6%

Fair Value

$78.56

Current Price

$7.73

$70.83 discount

UndervaluedFair: $78.56Overvalued

Intrinsic value data unavailable for KMX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CRMT3 strengths · Avg: 9.3/10
Price/BookValuation
0.1x10/10

Reasonable price relative to book value

EPS GrowthGrowth
1835.0%10/10

Earnings expanding 1835.0% YoY

PEG RatioValuation
0.698/10

Growing faster than its price suggests

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

CRMT4 concerns · Avg: 2.5/10
Market CapQuality
$65.17M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.993/10

Elevated debt levels

Return on EquityProfitability
-19.7%2/10

ROE of -19.7% — below average capital efficiency

Revenue GrowthGrowth
-12.0%2/10

Revenue declined 12.0%

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 : CRMT

The strongest argument for CRMT centers on Price/Book, EPS Growth, PEG Ratio. PEG of 0.69 suggests the stock is reasonably priced for its growth.

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 : CRMT

The primary concerns for CRMT are Market Cap, Debt/Equity, Return on Equity. Debt-to-equity of 1.99 is elevated, increasing financial risk.

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

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

KMX carries more volatility with a beta of 1.20 — expect wider price swings.

KMX is growing revenue faster at -1.2% — sustainability is the question.

CRMT generates stronger free cash flow (-7M), providing more financial flexibility.

Bottom Line

CRMT scores higher overall (55/100 vs 49/100). 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.

Americas Car-Mart Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

America's Car-Mart, Inc., is an automotive retailer in the United States. The company is headquartered in Rogers, Arkansas.

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 →

Want to dig deeper into these stocks?