CarMax Inc (KMX)vsOtter Tail Corporation (OTTR)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
OTTR
Otter Tail Corporation
$88.03
+0.22%
INDUSTRIALS · Cap: $3.69B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 2013% more annual revenue ($27.76B vs $1.31B). OTTR leads profitability with a 21.3% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. OTTR earns a higher WallStSmart Score of 67/100 (B-).
KMX
Buy52
out of 100
Grade: C-
OTTR
Strong Buy67
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$40.34
$229.73 discount
Margin of Safety
-60.8%
Fair Value
$53.45
Current Price
$88.03
$34.58 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Keeps 21 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 24.7%
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Expensive relative to growth rate
2.9% revenue growth
Distress zone — elevated risk
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : KMX
The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.38 suggests the stock is reasonably priced for its growth.
Bull Case : OTTR
The strongest argument for OTTR centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 21.3% and operating margin at 24.7%.
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 0.9% margins leave little buffer for downturns.
Bear Case : OTTR
The primary concerns for OTTR are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
OTTR is growing revenue faster at 2.9% — sustainability is the question.
OTTR generates stronger free cash flow (-115M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
OTTR scores higher overall (67/100 vs 52/100), backed by strong 21.3% margins. KMX offers better value entry with a 83.0% 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 →Otter Tail Corporation
INDUSTRIALS · CONGLOMERATES · USA
Otter Tail Corporation is engaged in electrical service, manufacturing and plastic piping businesses in the United States. The company is headquartered in Fergus Falls, Minnesota.
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