CarMax Inc (KMX)vsLowe's Companies Inc (LOW)
KMX
CarMax Inc
$56.42
+1.51%
CONSUMER CYCLICAL · Cap: $7.97B
LOW
Lowe's Companies Inc
$218.12
+4.34%
CONSUMER CYCLICAL · Cap: $117.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Lowe's Companies Inc generates 207% more annual revenue ($90.43B vs $29.46B). LOW leads profitability with a 7.3% profit margin vs 1.0%. KMX appears more attractively valued with a PEG of 0.68. KMX earns a higher WallStSmart Score of 65/100 (B-).
KMX
Strong Buy65
out of 100
Grade: B-
LOW
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for KMX.
Margin of Safety
-44.4%
Fair Value
$144.78
Current Price
$218.12
$73.34 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 81.6% YoY
Growing faster than its price suggests
17.7% revenue growth
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.1B in free cash flow
Areas to Watch
Moderate valuation
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
1.0% margin — thin
0.0% earnings growth
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
7.3% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull 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 0.68 suggests the stock is reasonably priced for its growth.
Bull Case : LOW
The strongest argument for LOW centers on Debt/Equity, Market Cap, P/E Ratio. PEG of 1.33 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. Debt-to-equity of 2.83 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.
Bear Case : LOW
The primary concerns for LOW are EPS Growth, Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
KMX profiles as a growth stock while LOW is a value play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.23 — expect wider price swings.
KMX is growing revenue faster at 17.7% — sustainability is the question.
LOW generates stronger free cash flow (3.1B), providing more financial flexibility.
Bottom Line
KMX scores higher overall (65/100 vs 50/100) and 17.7% revenue growth. Both earn "Strong 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 →Lowe's Companies Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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