CarMax Inc (KMX)vsMercadoLibre Inc. (MELI)
KMX
CarMax Inc
$47.15
+0.49%
CONSUMER CYCLICAL · Cap: $7.27B
MELI
MercadoLibre Inc.
$1,607.80
-1.65%
CONSUMER CYCLICAL · Cap: $83.47B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 15% more annual revenue ($31.80B vs $27.76B). MELI leads profitability with a 6.0% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.53. MELI earns a higher WallStSmart Score of 58/100 (C).
KMX
Hold49
out of 100
Grade: D+
MELI
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for KMX.
Margin of Safety
+61.8%
Fair Value
$5279.65
Current Price
$1607.80
$3671.85 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Revenue surging 49.0% year-over-year
Large-cap with strong market position
Every $100 of equity generates 26 in profit
Generating 1.3B in free cash flow
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
0.9% margin — thin
Trading at 11.2x book value
6.0% 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, PEG Ratio. PEG of 0.53 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 49.0% demonstrates continued momentum. PEG of 1.02 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 : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Debt/Equity. A P/E of 43.5x leaves little room for execution misses. Debt-to-equity of 1.70 is elevated, increasing financial risk.
Key Dynamics to Monitor
KMX profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.35 — expect wider price swings.
MELI is growing revenue faster at 49.0% — sustainability is the question.
MELI generates stronger free cash flow (1.3B), providing more financial flexibility.
Bottom Line
MELI scores higher overall (58/100 vs 49/100) and 49.0% revenue growth. Both earn "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 →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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