CarMax Inc (KMX)vsPDD Holdings Inc. (PDD)
KMX
CarMax Inc
$56.42
+1.51%
CONSUMER CYCLICAL · Cap: $7.97B
PDD
PDD Holdings Inc.
$81.68
+3.91%
CONSUMER CYCLICAL · Cap: $111.59B
Smart Verdict
WallStSmart Research — data-driven comparison
PDD Holdings Inc. generates 1430% more annual revenue ($450.78B vs $29.46B). PDD leads profitability with a 20.4% profit margin vs 1.0%. PDD appears more attractively valued with a PEG of 0.68. PDD earns a higher WallStSmart Score of 75/100 (B).
KMX
Strong Buy65
out of 100
Grade: B-
PDD
Strong Buy75
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for KMX.
Margin of Safety
+69.0%
Fair Value
$345.11
Current Price
$81.68
$263.43 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
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Generating 25.7B in free cash flow
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Areas to Watch
Moderate valuation
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
1.0% margin — thin
Weak financial health signals
Earnings declined 11.2%
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 : PDD
The strongest argument for PDD centers on P/E Ratio, Debt/Equity, Free Cash Flow. Profitability is solid with margins at 20.4% and operating margin at 24.7%. PEG of 0.68 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 : PDD
The primary concerns for PDD are Piotroski F-Score, EPS Growth.
Key Dynamics to Monitor
KMX profiles as a growth stock while PDD is a mature 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.
PDD generates stronger free cash flow (25.7B), providing more financial flexibility.
Bottom Line
PDD scores higher overall (75/100 vs 65/100), backed by strong 20.4% margins. Both earn "Strong Buy" and "Strong 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 →PDD Holdings Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · China
Pinduoduo Inc., operates an electronic commerce platform in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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