Group 1 Automotive Inc (GPI)vsCarMax Inc (KMX)
GPI
Group 1 Automotive Inc
$311.00
+1.82%
CONSUMER CYCLICAL · Cap: $3.87B
KMX
CarMax Inc
$47.15
+0.49%
CONSUMER CYCLICAL · Cap: $7.27B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 24% more annual revenue ($27.76B vs $22.47B). GPI leads profitability with a 1.5% profit margin vs 0.9%. GPI appears more attractively valued with a PEG of 0.39. GPI earns a higher WallStSmart Score of 59/100 (C).
GPI
Buy59
out of 100
Grade: C
KMX
Hold49
out of 100
Grade: D+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
1.5% margin — thin
Operating margin of 4.5%
Elevated debt levels
Revenue declined 1.8%
Premium valuation, high expectations priced in
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
0.9% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : GPI
The strongest argument for GPI centers on PEG Ratio, Price/Book, Altman Z-Score. PEG of 0.39 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 : GPI
The primary concerns for GPI are Profit Margin, Operating Margin, Debt/Equity. Debt-to-equity of 1.98 is elevated, increasing financial risk. Thin 1.5% margins leave little buffer for downturns.
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
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.
GPI generates stronger free cash flow (-2M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GPI scores higher overall (59/100 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.
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
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