CarMax Inc (KMX)vsToyota Motor Corporation ADR (TM)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
TM
Toyota Motor Corporation ADR
$187.53
-0.78%
CONSUMER CYCLICAL · Cap: $230.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Toyota Motor Corporation ADR generates 181672% more annual revenue ($50.45T vs $27.76B). TM leads profitability with a 7.3% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. TM earns a higher WallStSmart Score of 55/100 (C).
KMX
Buy52
out of 100
Grade: C-
TM
Buy55
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
Intrinsic value data unavailable for TM.
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
Attractively priced relative to earnings
Generating 592.1B 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%
Expensive relative to growth rate
Trading at 16.0x book value
7.3% margin — thin
Earnings declined 42.3%
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 : TM
The strongest argument for TM centers on Market Cap, P/E Ratio, Free Cash Flow.
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 : TM
The primary concerns for TM are PEG Ratio, Price/Book, Profit Margin.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
TM is growing revenue faster at 8.6% — sustainability is the question.
TM generates stronger free cash flow (592.1B), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TM scores higher overall (55/100 vs 52/100). 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 →Toyota Motor Corporation ADR
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.
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