CarMax Inc (KMX)vsValvoline Inc (VVV)
KMX
CarMax Inc
$41.88
-0.52%
CONSUMER CYCLICAL · Cap: $6.18B
VVV
Valvoline Inc
$35.20
+2.39%
CONSUMER CYCLICAL · Cap: $4.38B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 1483% more annual revenue ($27.83B vs $1.76B). VVV leads profitability with a 4.9% profit margin vs 1.6%. KMX appears more attractively valued with a PEG of 0.66. VVV earns a higher WallStSmart Score of 69/100 (B-).
KMX
Buy54
out of 100
Grade: C-
VVV
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-120.8%
Fair Value
$20.74
Current Price
$41.88
$21.14 premium
Margin of Safety
-20.4%
Fair Value
$32.29
Current Price
$35.20
$2.91 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
Every $100 of equity generates 33 in profit
Strong operational efficiency at 26.2%
Revenue surging 28.1% year-over-year
Earnings expanding 40.3% YoY
Areas to Watch
Distress zone — elevated risk
ROE of 7.5% — below average capital efficiency
1.6% margin — thin
Operating margin of 1.8%
Trading at 14.5x book value
4.9% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : KMX
The strongest argument for KMX centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.
Bull Case : VVV
The strongest argument for VVV centers on Return on Equity, Operating Margin, Revenue Growth. Revenue growth of 28.1% demonstrates continued momentum. PEG of 1.10 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 1.6% margins leave little buffer for downturns.
Bear Case : VVV
The primary concerns for VVV are Price/Book, Profit Margin, P/E Ratio. A P/E of 49.8x leaves little room for execution misses. Thin 4.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX profiles as a value stock while VVV is a growth play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.33 — expect wider price swings.
VVV is growing revenue faster at 28.1% — sustainability is the question.
KMX generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
VVV scores higher overall (69/100 vs 54/100) and 28.1% revenue growth. 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 →Valvoline Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Valvoline Inc. manufactures, markets and supplies automotive and engine maintenance products and services. The company is headquartered in Lexington, Kentucky.
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