CarMax Inc (KMX)vsLithia Motors Inc (LAD)
KMX
CarMax Inc
$41.86
-1.23%
CONSUMER CYCLICAL · Cap: $6.15B
LAD
Lithia Motors Inc
$243.00
-2.14%
CONSUMER CYCLICAL · Cap: $5.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 35% more annual revenue ($37.63B vs $27.83B). LAD leads profitability with a 2.2% profit margin vs 1.6%. LAD appears more attractively valued with a PEG of 0.44. LAD earns a higher WallStSmart Score of 58/100 (C).
KMX
Buy54
out of 100
Grade: C-
LAD
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-123.7%
Fair Value
$20.47
Current Price
$41.86
$21.39 premium
Margin of Safety
-45.8%
Fair Value
$219.78
Current Price
$243.00
$23.22 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 30.0% year-over-year
Areas to Watch
Distress zone — elevated risk
ROE of 7.5% — below average capital efficiency
1.6% margin — thin
Operating margin of 1.8%
2.2% margin — thin
Operating margin of 3.9%
Weak financial health signals
Earnings declined 28.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : KMX
The strongest argument for KMX centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.65 suggests the stock is reasonably priced for its growth.
Bull Case : LAD
The strongest argument for LAD centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 30.0% demonstrates continued momentum. PEG of 0.44 suggests the stock is reasonably priced for its 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 1.6% margins leave little buffer for downturns.
Bear Case : LAD
The primary concerns for LAD are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX profiles as a value stock while LAD is a growth play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.33 — expect wider price swings.
LAD is growing revenue faster at 30.0% — sustainability is the question.
KMX generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
LAD scores higher overall (58/100 vs 54/100) and 30.0% revenue growth. 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.
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 →Lithia Motors Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Lithia Motors, Inc. is an automobile retailer in the United States. The company is headquartered in Medford, Oregon.
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