CarMax Inc (KMX)vsPenske Automotive Group Inc (PAG)
KMX
CarMax Inc
$56.42
+1.51%
CONSUMER CYCLICAL · Cap: $7.97B
PAG
Penske Automotive Group Inc
$213.25
+0.53%
CONSUMER CYCLICAL · Cap: $13.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 9% more annual revenue ($32.20B vs $29.46B). PAG leads profitability with a 2.8% 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-
PAG
Buy52
out of 100
Grade: C-
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
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Moderate valuation
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
1.0% margin — thin
2.8% margin — thin
Operating margin of 4.0%
Elevated debt levels
Expensive relative to growth rate
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 : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
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 : PAG
The primary concerns for PAG are Profit Margin, Operating Margin, Debt/Equity. Debt-to-equity of 1.59 is elevated, increasing financial risk. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX profiles as a growth stock while PAG is a value play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.23 — expect wider price swings.
KMX is growing revenue faster at 17.7% — sustainability is the question.
KMX generates stronger free cash flow (806M), providing more financial flexibility.
Bottom Line
KMX scores higher overall (65/100 vs 52/100) and 17.7% revenue growth. 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 →Penske Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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