CarMax Inc (KMX)vsSAP SE ADR (SAP)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
SAP
SAP SE ADR
$173.70
-0.58%
TECHNOLOGY · Cap: $204.11B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 35% more annual revenue ($37.34B vs $27.76B). SAP leads profitability with a 19.6% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. SAP earns a higher WallStSmart Score of 62/100 (C+).
KMX
Buy52
out of 100
Grade: C-
SAP
Buy62
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
-16.9%
Fair Value
$168.01
Current Price
$173.70
$5.69 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Strong operational efficiency at 30.0%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Generating 3.3B in free cash flow
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
No major concerns identified
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 : SAP
The strongest argument for SAP centers on Market Cap, Operating Margin, Altman Z-Score. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 0.73 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 : SAP
No major red flags identified for SAP, but monitor valuation.
Key Dynamics to Monitor
KMX profiles as a value stock while SAP is a mature play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
SAP is growing revenue faster at 6.0% — sustainability is the question.
SAP generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
SAP scores higher overall (62/100 vs 52/100), backed by strong 19.6% margins. 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 →SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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