CarMax Inc (KMX)vsRush Enterprises A Inc (RUSHA)
KMX
CarMax Inc
$41.86
-1.23%
CONSUMER CYCLICAL · Cap: $6.15B
RUSHA
Rush Enterprises A Inc
$63.01
-0.16%
CONSUMER CYCLICAL · Cap: $4.85B
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
Buy54
out of 100
Grade: C-
RUSHA
Hold44
out of 100
Grade: D
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-123.7%
Fair Value
$20.47
Current Price
$41.86
$21.39 premium
Margin of Safety
-229.0%
Fair Value
$22.17
Current Price
$63.01
$40.84 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Distress zone — elevated risk
ROE of 7.5% — below average capital efficiency
1.6% margin — thin
Operating margin of 1.8%
3.5% margin — thin
Expensive relative to growth rate
Revenue declined 11.8%
Earnings declined 11.0%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Visit Website →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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