CarMax Inc (KMX)vsParker-Hannifin Corporation (PH)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
PH
Parker-Hannifin Corporation
$878.83
-0.90%
INDUSTRIALS · Cap: $111.82B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 32% more annual revenue ($27.76B vs $20.99B). PH leads profitability with a 16.6% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. PH earns a higher WallStSmart Score of 55/100 (C-).
KMX
Buy52
out of 100
Grade: C-
PH
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$40.34
$229.73 discount
Intrinsic value data unavailable for PH.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Large-cap with strong market position
Every $100 of equity generates 25 in profit
Strong operational efficiency at 21.5%
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Premium valuation, high expectations priced in
Expensive relative to growth rate
Earnings declined 4.2%
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 : PH
The strongest argument for PH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 16.6% and operating margin at 21.5%. Revenue growth of 10.6% demonstrates continued momentum.
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 : PH
The primary concerns for PH are P/E Ratio, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
KMX profiles as a value stock while PH is a mature play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
PH is growing revenue faster at 10.6% — sustainability is the question.
PH generates stronger free cash flow (881M), providing more financial flexibility.
Bottom Line
PH scores higher overall (55/100 vs 52/100), backed by strong 16.6% margins and 10.6% revenue growth. KMX offers better value entry with a 83.0% margin of safety. Both earn "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 →Parker-Hannifin Corporation
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.
Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
Want to dig deeper into these stocks?