WallStSmart

CarMax Inc (KMX)vsLowe's Companies Inc (LOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 219% more annual revenue ($88.43B vs $27.76B). LOW leads profitability with a 7.5% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.53. LOW earns a higher WallStSmart Score of 50/100 (D+).

KMX

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 5.7Quality: 7.0
Piotroski: 4/9Altman Z: 1.66

LOW

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 5.5Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.88
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for KMX.

LOWSignificantly Overvalued (-60.0%)

Margin of Safety

-60.0%

Fair Value

$139.97

Current Price

$210.74

$70.77 premium

UndervaluedFair: $139.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMX2 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

PEG RatioValuation
0.538/10

Growing faster than its price suggests

LOW3 strengths · Avg: 9.0/10
Debt/EquityHealth
-4.5910/10

Conservative balance sheet, low leverage

Market CapQuality
$123.46B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.83B8/10

Generating 2.8B in free cash flow

Areas to Watch

KMX4 concerns · Avg: 3.5/10
P/E RatioValuation
30.5x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

LOW4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.884/10

Grey zone — moderate risk

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
7.5%3/10

7.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull 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 : LOW

The strongest argument for LOW centers on Debt/Equity, Market Cap, Free Cash Flow. Revenue growth of 10.3% demonstrates continued momentum. PEG of 1.44 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 : LOW

The primary concerns for LOW are Altman Z-Score, Return on Equity, Profit Margin.

Key Dynamics to Monitor

KMX carries more volatility with a beta of 1.20 — expect wider price swings.

LOW is growing revenue faster at 10.3% — sustainability is the question.

LOW generates stronger free cash flow (2.8B), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LOW scores higher overall (50/100 vs 49/100) and 10.3% revenue growth. Both earn "Hold" 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 →

Want to dig deeper into these stocks?