Group 1 Automotive Inc (GPI)vsCarMax Inc (KMX)
GPI
Group 1 Automotive Inc
$259.60
+4.03%
CONSUMER CYCLICAL · Cap: $2.89B
KMX
CarMax Inc
$53.99
+0.19%
CONSUMER CYCLICAL · Cap: $7.57B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 33% more annual revenue ($29.46B vs $22.15B). GPI leads profitability with a 1.3% profit margin vs 1.0%. GPI appears more attractively valued with a PEG of 0.29. KMX earns a higher WallStSmart Score of 65/100 (B-).
GPI
Buy51
out of 100
Grade: C-
KMX
Strong Buy65
out of 100
Grade: B-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Earnings expanding 81.6% YoY
Growing faster than its price suggests
17.7% revenue growth
Areas to Watch
1.3% margin — thin
Operating margin of 3.8%
Revenue declined 5.6%
Earnings declined 20.1%
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
1.0% margin — thin
Operating margin of 2.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : GPI
The strongest argument for GPI centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.29 suggests the stock is reasonably priced for its growth.
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 0.61 suggests the stock is reasonably priced for its growth.
Bear Case : GPI
The primary concerns for GPI are Profit Margin, Operating Margin, Revenue Growth. Debt-to-equity of 2.03 is elevated, increasing financial risk. Thin 1.3% margins leave little buffer for downturns.
Bear Case : KMX
The primary concerns for KMX are Altman Z-Score, Return on Equity, Profit Margin. Debt-to-equity of 2.83 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
GPI profiles as a value stock while KMX is a growth play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.23 — expect wider price swings.
KMX is growing revenue faster at 17.7% — sustainability is the question.
KMX generates stronger free cash flow (806M), providing more financial flexibility.
Bottom Line
KMX scores higher overall (65/100 vs 51/100) 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.
Group 1 Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Group 1 Automotive, Inc., operates in the automotive retail industry. The company is headquartered in Houston, Texas.
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
Want to dig deeper into these stocks?