WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 274% more annual revenue ($27.83B vs $7.43B). RUSHA leads profitability with a 3.5% profit margin vs 1.6%. KMX appears more attractively valued with a PEG of 0.65. KMX earns a higher WallStSmart Score of 54/100 (C-).

KMX

Buy

54

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 1.64

RUSHA

Hold

44

out of 100

Grade: D

Growth: 2.7Profit: 5.5Value: 4.7Quality: 6.3
Piotroski: 4/9Altman Z: 3.13
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KMXSignificantly Overvalued (-123.7%)

Margin of Safety

-123.7%

Fair Value

$20.47

Current Price

$41.86

$21.39 premium

UndervaluedFair: $20.47Overvalued
RUSHASignificantly Overvalued (-229.0%)

Margin of Safety

-229.0%

Fair Value

$22.17

Current Price

$63.01

$40.84 premium

UndervaluedFair: $22.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMX4 strengths · Avg: 8.5/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.658/10

Growing faster than its price suggests

P/E RatioValuation
13.9x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.11B8/10

Generating 1.1B in free cash flow

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

Safe zone — low bankruptcy risk

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Areas to Watch

KMX4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.644/10

Distress zone — elevated risk

Return on EquityProfitability
7.5%3/10

ROE of 7.5% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

RUSHA4 concerns · Avg: 2.3/10
Profit MarginProfitability
3.5%3/10

3.5% margin — thin

PEG RatioValuation
3.162/10

Expensive relative to growth rate

Revenue GrowthGrowth
-11.8%2/10

Revenue declined 11.8%

EPS GrowthGrowth
-11.0%2/10

Earnings declined 11.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : KMX

The strongest argument for KMX centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.65 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 1.6% margins leave little buffer for downturns.

Bear Case : RUSHA

The primary concerns for RUSHA are Profit Margin, PEG Ratio, Revenue Growth. Thin 3.5% margins leave little buffer for downturns.

Key Dynamics to Monitor

KMX carries more volatility with a beta of 1.33 — expect wider price swings.

KMX is growing revenue faster at -6.7% — sustainability is the question.

KMX generates stronger free cash flow (1.1B), providing more financial flexibility.

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

Bottom Line

KMX scores higher overall (54/100 vs 44/100). 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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