Emerson Electric Company (EMR)vsCarMax Inc (KMX)
EMR
Emerson Electric Company
$141.31
+0.16%
INDUSTRIALS · Cap: $79.02B
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 52% more annual revenue ($27.76B vs $18.32B). EMR leads profitability with a 13.4% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. EMR earns a higher WallStSmart Score of 59/100 (C).
EMR
Buy59
out of 100
Grade: C
KMX
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for EMR.
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
Large-cap with strong market position
Strong operational efficiency at 24.2%
Earnings expanding 27.9% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
2.9% revenue growth
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 : EMR
The strongest argument for EMR centers on Market Cap, Operating Margin, EPS Growth.
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 : EMR
The primary concerns for EMR are PEG Ratio, P/E Ratio, Revenue Growth.
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
EMR carries more volatility with a beta of 1.25 — expect wider price swings.
EMR is growing revenue faster at 2.9% — sustainability is the question.
EMR generates stronger free cash flow (694M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
EMR scores higher overall (59/100 vs 52/100). KMX offers better value entry with a 83.0% margin of safety. Both earn "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.
Emerson Electric Company
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri. The Fortune 500 company manufactures products and provides engineering services for a wide range of industrial, commercial, and consumer markets.
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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