CarMax Inc (KMX)vsLithia Motors Inc (LAD)
KMX
CarMax Inc
$47.15
+0.49%
CONSUMER CYCLICAL · Cap: $7.27B
LAD
Lithia Motors Inc
$288.84
-0.61%
CONSUMER CYCLICAL · Cap: $7.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 36% more annual revenue ($37.73B vs $27.76B). LAD leads profitability with a 1.9% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.53. LAD earns a higher WallStSmart Score of 55/100 (C).
KMX
Hold49
out of 100
Grade: D+
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for KMX.
Margin of Safety
+8.7%
Fair Value
$350.78
Current Price
$288.84
$61.94 discount
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
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
0.9% margin — thin
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.70 suggests the stock is reasonably priced for its growth.
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.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 1.51 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.26 — expect wider price swings.
LAD is growing revenue faster at 1.0% — sustainability is the question.
LAD generates stronger free cash flow (-206M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (55/100 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.
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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