Carvana Co (CVNA)vsCarMax Inc (KMX)
CVNA
Carvana Co
$72.00
+5.43%
CONSUMER CYCLICAL · Cap: $75.70B
KMX
CarMax Inc
$56.42
+1.51%
CONSUMER CYCLICAL · Cap: $7.97B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 7% more annual revenue ($29.46B vs $27.45B). CVNA leads profitability with a 6.2% profit margin vs 1.0%. KMX trades at a lower P/E of 25.5x. KMX earns a higher WallStSmart Score of 65/100 (B-).
CVNA
Buy60
out of 100
Grade: C+
KMX
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.8%
Fair Value
$51.41
Current Price
$72.00
$20.59 premium
Intrinsic value data unavailable for KMX.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 39 in profit
Revenue surging 42.4% year-over-year
Earnings expanding 85.7% YoY
Large-cap with strong market position
Reasonable price relative to book value
Earnings expanding 81.6% YoY
Growing faster than its price suggests
17.7% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
Trading at 11.9x book value
6.2% margin — thin
Elevated debt levels
Moderate valuation
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
1.0% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 42.4% demonstrates continued momentum.
Bull Case : KMX
The strongest argument for KMX centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 17.7% demonstrates continued momentum. PEG of 0.68 suggests the stock is reasonably priced for its growth.
Bear Case : CVNA
The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.
Bear Case : KMX
The primary concerns for KMX are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 2.83 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
CVNA profiles as a hypergrowth stock while KMX is a growth play — different risk/reward profiles.
CVNA carries more volatility with a beta of 3.55 — expect wider price swings.
CVNA is growing revenue faster at 42.4% — sustainability is the question.
KMX generates stronger free cash flow (806M), providing more financial flexibility.
Bottom Line
KMX scores higher overall (65/100 vs 60/100) and 17.7% revenue growth. 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.
Carvana Co
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.
Visit Website →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
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