WallStSmart

CarMax Inc (KMX)vsMister Car Wash, Inc. Common Stock (MCW)

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Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 2547% more annual revenue ($27.83B vs $1.05B). MCW leads profitability with a 9.8% profit margin vs 1.6%. KMX trades at a lower P/E of 13.8x. MCW earns a higher WallStSmart Score of 55/100 (C-).

KMX

Buy

54

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 1.64

MCW

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 6.5Value: 8.3Quality: 4.5
Piotroski: 3/9Altman Z: 0.94
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KMXSignificantly Overvalued (-120.8%)

Margin of Safety

-120.8%

Fair Value

$20.74

Current Price

$41.88

$21.14 premium

UndervaluedFair: $20.74Overvalued
MCWUndervalued (+58.4%)

Margin of Safety

+58.4%

Fair Value

$14.51

Current Price

$6.99

$7.52 discount

UndervaluedFair: $14.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMX4 strengths · Avg: 8.5/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.668/10

Growing faster than its price suggests

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.11B8/10

Generating 1.1B in free cash flow

MCW2 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
20.1%8/10

Strong operational efficiency at 20.1%

Areas to Watch

KMX4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.644/10

Distress zone — elevated risk

Return on EquityProfitability
7.5%3/10

ROE of 7.5% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

MCW4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
4.0%4/10

4.0% revenue growth

EPS GrowthGrowth
2.0%4/10

2.0% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.942/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : KMX

The strongest argument for KMX centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.

Bull Case : MCW

The strongest argument for MCW centers on Price/Book, Operating Margin.

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 : MCW

The primary concerns for MCW are Revenue Growth, EPS Growth, Piotroski F-Score.

Key Dynamics to Monitor

MCW carries more volatility with a beta of 1.41 — expect wider price swings.

MCW is growing revenue faster at 4.0% — sustainability is the question.

KMX generates stronger free cash flow (1.1B), providing more financial flexibility.

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

Bottom Line

MCW scores higher overall (55/100 vs 54/100). 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.

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Mister Car Wash, Inc. Common Stock

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Mister Car Wash, Inc. is a leading entity in the automotive services sector, boasting an extensive network of car wash and oil change facilities across the United States. The company employs a strategic subscription model that enhances customer retention and provides consistent revenue streams, reflecting a strong commitment to customer service and loyalty. Mister Car Wash is dedicated to innovation and sustainability, continually upgrading its technology and operational practices to improve customer experience while reducing its environmental footprint. Positioned within a resilient market, the company is well-equipped to capitalize on the increasing consumer demand for convenient, high-quality vehicle maintenance solutions, making it an attractive proposition for institutional investors.

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