WallStSmart

Driven Brands Holdings Inc (DRVN)vsCarMax Inc (KMX)

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Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 1361% more annual revenue ($27.76B vs $1.90B). DRVN leads profitability with a 9.7% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.53. DRVN earns a higher WallStSmart Score of 69/100 (B-).

DRVN

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 6.5Value: 6.7Quality: 3.5
Piotroski: 4/9Altman Z: 0.39

KMX

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DRVNFair Value (-2.6%)

Margin of Safety

-2.6%

Fair Value

$16.48

Current Price

$13.00

$3.48 premium

UndervaluedFair: $16.48Overvalued

Intrinsic value data unavailable for KMX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DRVN5 strengths · Avg: 8.6/10
EPS GrowthGrowth
444.1%10/10

Earnings expanding 444.1% YoY

Return on EquityProfitability
20.2%9/10

Every $100 of equity generates 20 in profit

PEG RatioValuation
0.958/10

Growing faster than its price suggests

P/E RatioValuation
15.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

KMX2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.538/10

Growing faster than its price suggests

Areas to Watch

DRVN2 concerns · Avg: 1.5/10
Altman Z-ScoreHealth
0.392/10

Distress zone — elevated risk

Debt/EquityHealth
2.771/10

Elevated debt levels

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 : DRVN

The strongest argument for DRVN centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.95 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 : DRVN

The primary concerns for DRVN are Altman Z-Score, Debt/Equity. Debt-to-equity of 2.77 is elevated, increasing financial risk.

Bear Case : KMX

The primary concerns for KMX are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 3.05 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 1.20 — expect wider price swings.

DRVN is growing revenue faster at 8.2% — sustainability is the question.

DRVN generates stronger free cash flow (23M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

DRVN scores higher overall (69/100 vs 49/100). Both earn "Strong 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.

Driven Brands Holdings Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Driven Brands Holdings Inc. provides automotive services to retail and commercial clients in North America and internationally. The company is headquartered in Charlotte, North Carolina.

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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