Group 1 Automotive Inc (GPI)vsCarMax Inc (KMX)
GPI
Group 1 Automotive Inc
$326.86
+2.83%
CONSUMER CYCLICAL · Cap: $4.01B
KMX
CarMax Inc
$41.88
-0.52%
CONSUMER CYCLICAL · Cap: $6.18B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 23% more annual revenue ($27.83B vs $22.57B). KMX leads profitability with a 1.6% profit margin vs 1.4%. GPI appears more attractively valued with a PEG of 0.33. GPI earns a higher WallStSmart Score of 55/100 (C).
GPI
Buy55
out of 100
Grade: C
KMX
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-97.2%
Fair Value
$170.95
Current Price
$326.86
$155.91 premium
Margin of Safety
-120.8%
Fair Value
$20.74
Current Price
$41.88
$21.14 premium
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
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Areas to Watch
0.6% revenue growth
1.4% margin — thin
Operating margin of 3.9%
Earnings declined 50.2%
Distress zone — elevated risk
ROE of 7.5% — below average capital efficiency
1.6% margin — thin
Operating margin of 1.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : GPI
The strongest argument for GPI centers on PEG Ratio, Price/Book, Altman Z-Score. PEG of 0.33 suggests the stock is reasonably priced for its growth.
Bull Case : KMX
The strongest argument for KMX centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.
Bear Case : GPI
The primary concerns for GPI are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 2.10 is elevated, increasing financial risk. Thin 1.4% 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 2.75 is elevated, increasing financial risk. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.33 — expect wider price swings.
GPI is growing revenue faster at 0.6% — sustainability is the question.
KMX generates stronger free cash flow (1.1B), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GPI scores higher overall (55/100 vs 54/100). 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.
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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