CarMax Inc (KMX)vsPPG Industries Inc (PPG)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
PPG
PPG Industries Inc
$109.61
+0.62%
BASIC MATERIALS · Cap: $24.28B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 72% more annual revenue ($27.76B vs $16.12B). PPG leads profitability with a 9.8% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. PPG earns a higher WallStSmart Score of 60/100 (C+).
KMX
Buy52
out of 100
Grade: C-
PPG
Buy60
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
Margin of Safety
+16.0%
Fair Value
$155.95
Current Price
$109.61
$46.34 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 21 in profit
Attractively priced relative to earnings
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
4.2% earnings growth
Negative free cash flow — burning cash
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 : PPG
The strongest argument for PPG centers on Return on Equity, P/E Ratio. PEG of 1.44 suggests the stock is reasonably priced for its growth.
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 : PPG
The primary concerns for PPG are EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
PPG is growing revenue faster at 6.7% — sustainability is the question.
PPG generates stronger free cash flow (-163M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PPG scores higher overall (60/100 vs 52/100). 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 →PPG Industries Inc
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe.
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