CarMax Inc (KMX)vsU.S. Bancorp (USB)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
USB
U.S. Bancorp
$55.53
+0.40%
FINANCIAL SERVICES · Cap: $85.86B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 4% more annual revenue ($27.76B vs $26.65B). USB leads profitability with a 29.3% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. USB earns a higher WallStSmart Score of 71/100 (B).
KMX
Buy52
out of 100
Grade: C-
USB
Strong Buy71
out of 100
Grade: B
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 USB.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 37.8%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.3B 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%
Expensive relative to growth rate
4.6% revenue growth
Distress zone — elevated risk
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 : USB
The strongest argument for USB centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 29.3% and operating margin at 37.8%.
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 : USB
The primary concerns for USB are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
USB is growing revenue faster at 4.6% — sustainability is the question.
USB generates stronger free cash flow (1.3B), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
USB scores higher overall (71/100 vs 52/100), backed by strong 29.3% margins. KMX offers better value entry with a 83.0% margin of safety. Both earn "Strong 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 →U.S. Bancorp
FINANCIAL SERVICES · BANKS - REGIONAL · USA
U.S. Bancorp is an American bank holding company based in Minneapolis, Minnesota, and incorporated in Delaware. The company provides banking, investment, mortgage, trust, and payment services products to individuals, businesses, governmental entities, and other financial institutions.
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