CarMax Inc (KMX)vsSonic Automotive Inc (SAH)
KMX
CarMax Inc
$58.18
+0.21%
CONSUMER CYCLICAL · Cap: $8.13B
SAH
Sonic Automotive Inc
$82.44
-2.89%
CONSUMER CYCLICAL · Cap: $2.90B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 82% more annual revenue ($28.20B vs $15.47B). SAH leads profitability with a 1.4% profit margin vs 0.8%. SAH appears more attractively valued with a PEG of 0.45. SAH earns a higher WallStSmart Score of 59/100 (C).
KMX
Buy53
out of 100
Grade: C-
SAH
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for KMX.
Margin of Safety
-26.7%
Fair Value
$48.04
Current Price
$82.44
$34.40 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
0.8% margin — thin
1.4% margin — thin
Operating margin of 3.4%
Earnings declined 12.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : KMX
The strongest argument for KMX centers on Price/Book, PEG Ratio. PEG of 0.56 suggests the stock is reasonably priced for its growth.
Bull Case : SAH
The strongest argument for SAH centers on PEG Ratio, Altman Z-Score, P/E Ratio. PEG of 0.45 suggests the stock is reasonably priced for its growth.
Bear Case : KMX
The primary concerns for KMX are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 3.05 is elevated, increasing financial risk. Thin 0.8% margins leave little buffer for downturns.
Bear Case : SAH
The primary concerns for SAH are Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.51 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.16 — expect wider price swings.
SAH is growing revenue faster at 7.6% — sustainability is the question.
SAH generates stronger free cash flow (-2M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
SAH scores higher overall (59/100 vs 53/100). 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 →Sonic Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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