WallStSmart

CarMax Inc (KMX)vsRush Enterprises A Inc (RUSHA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 282% more annual revenue ($27.76B vs $7.27B). RUSHA leads profitability with a 3.6% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.40. KMX earns a higher WallStSmart Score of 52/100 (C-).

KMX

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 8.7Quality: 4.5
Piotroski: 3/9Altman Z: 1.53

RUSHA

Hold

47

out of 100

Grade: D+

Growth: 4.0Profit: 5.0Value: 6.0Quality: 6.3
Piotroski: 4/9Altman Z: 3.13
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KMXUndervalued (+83.0%)

Margin of Safety

+83.0%

Fair Value

$270.07

Current Price

$37.25

$232.82 discount

UndervaluedFair: $270.07Overvalued
RUSHAUndervalued (+55.8%)

Margin of Safety

+55.8%

Fair Value

$164.81

Current Price

$71.03

$93.78 discount

UndervaluedFair: $164.81Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMX2 strengths · Avg: 10.0/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

RUSHA2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.1310/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

Areas to Watch

KMX4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Return on EquityProfitability
4.1%3/10

ROE of 4.1% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

RUSHA4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.6%3/10

3.6% margin — thin

Operating MarginProfitability
4.9%3/10

Operating margin of 4.9%

PEG RatioValuation
3.162/10

Expensive relative to growth rate

Revenue GrowthGrowth
-9.0%2/10

Revenue declined 9.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : KMX

The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.40 suggests the stock is reasonably priced for its growth.

Bull Case : RUSHA

The strongest argument for RUSHA centers on Altman Z-Score, Price/Book.

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 : RUSHA

The primary concerns for RUSHA are Profit Margin, Operating Margin, PEG Ratio. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

KMX carries more volatility with a beta of 1.30 — expect wider price swings.

KMX is growing revenue faster at -1.2% — sustainability is the question.

RUSHA generates stronger free cash flow (-218M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

KMX scores higher overall (52/100 vs 47/100). RUSHA offers better value entry with a 55.8% margin of safety. Both earn "Buy" and "Hold" 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.

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Rush Enterprises A Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Rush Enterprises, Inc. is an integrated retailer of commercial vehicles and related services in the United States. The company is headquartered in New Braunfels, Texas.

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