KAR Auction Services Inc (KAR)vsCarMax Inc (KMX)
KAR
KAR Auction Services Inc
$30.88
+0.36%
CONSUMER CYCLICAL · Cap: $3.28B
KMX
CarMax Inc
$53.99
+0.19%
CONSUMER CYCLICAL · Cap: $7.57B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 1454% more annual revenue ($29.46B vs $1.90B). KMX leads profitability with a 1.0% profit margin vs 0.1%. KMX appears more attractively valued with a PEG of 0.61. KMX earns a higher WallStSmart Score of 65/100 (B-).
KAR
Strong Buy65
out of 100
Grade: B-
KMX
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-65.7%
Fair Value
$18.64
Current Price
$30.88
$12.24 premium
Intrinsic value data unavailable for KMX.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Reasonable price relative to book value
Earnings expanding 81.6% YoY
Growing faster than its price suggests
17.7% revenue growth
Areas to Watch
Premium valuation, high expectations priced in
0.1% revenue growth
1.1% earnings growth
ROE of 0.1% — below average capital efficiency
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 : KAR
The strongest argument for KAR centers on Price/Book. PEG of 1.34 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 : KAR
The primary concerns for KAR are P/E Ratio, Revenue Growth, EPS Growth. Thin 0.1% 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
KAR profiles as a value stock while KMX is a growth play — different risk/reward profiles.
KAR carries more volatility with a beta of 1.25 — 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
KAR scores higher overall (65/100 vs 65/100). Both earn "Strong Buy" and "Strong 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.
KAR Auction Services Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
KAR Auction Services, Inc. provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company is headquartered in Carmel, Indiana.
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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