CarMax Inc (KMX)vsMercadoLibre Inc. (MELI)
KMX
CarMax Inc
$56.42
+1.51%
CONSUMER CYCLICAL · Cap: $7.97B
MELI
MercadoLibre Inc.
$1,676.79
+3.22%
CONSUMER CYCLICAL · Cap: $82.36B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 19% more annual revenue ($35.18B vs $29.46B). MELI leads profitability with a 5.3% 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-
MELI
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for KMX.
Margin of Safety
+64.4%
Fair Value
$5665.85
Current Price
$1676.79
$3989.06 discount
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
Revenue surging 49.8% year-over-year
Large-cap with strong market position
Every $100 of equity generates 24 in profit
Growing faster than its price suggests
Generating 3.2B 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
Trading at 10.9x book value
5.3% margin — thin
Elevated debt levels
Weak financial health signals
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 : MELI
The strongest argument for MELI centers on Revenue Growth, Market Cap, Return on Equity. Revenue growth of 49.8% demonstrates continued momentum. PEG of 0.89 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 : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 44.2x leaves little room for execution misses. Debt-to-equity of 1.68 is elevated, increasing financial risk.
Key Dynamics to Monitor
KMX profiles as a growth stock while MELI is a hypergrowth play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.31 — expect wider price swings.
MELI is growing revenue faster at 49.8% — sustainability is the question.
MELI generates stronger free cash flow (3.2B), providing more financial flexibility.
Bottom Line
KMX scores higher overall (65/100 vs 60/100) and 17.7% revenue growth. MELI offers better value entry with a 64.4% margin of safety. Both earn "Strong 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 →MercadoLibre Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · USA
MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.
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