CarMax Inc (KMX)vsLockheed Martin Corporation (LMT)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
LMT
Lockheed Martin Corporation
$506.51
-1.15%
INDUSTRIALS · Cap: $116.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Lockheed Martin Corporation generates 171% more annual revenue ($75.11B vs $27.76B). LMT leads profitability with a 6.4% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. LMT earns a higher WallStSmart Score of 55/100 (C-).
KMX
Buy52
out of 100
Grade: C-
LMT
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$40.34
$229.73 discount
Margin of Safety
-37.0%
Fair Value
$459.03
Current Price
$506.51
$47.48 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 68 in profit
Large-cap with strong market position
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Trading at 15.6x book value
0.3% revenue growth
6.4% margin — thin
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : KMX
The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.38 suggests the stock is reasonably priced for its growth.
Bull Case : LMT
The strongest argument for LMT centers on Return on Equity, Market Cap. PEG of 1.09 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 0.9% margins leave little buffer for downturns.
Bear Case : LMT
The primary concerns for LMT are Price/Book, Revenue Growth, Profit Margin. Debt-to-equity of 3.23 is elevated, increasing financial risk.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
LMT is growing revenue faster at 0.3% — sustainability is the question.
LMT generates stronger free cash flow (-291M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LMT scores higher overall (55/100 vs 52/100). KMX offers better value entry with a 83.0% margin of safety. 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 →Lockheed Martin Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Lockheed Martin Corporation is an American aerospace, defense, information security, and technology company with worldwide interests. It is headquartered in North Bethesda, Maryland, in the Washington, D.C., area.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
Want to dig deeper into these stocks?