WallStSmart

Asbury Automotive Group Inc (ABG)vsCarMax Inc (KMX)

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Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 55% more annual revenue ($27.76B vs $17.96B). ABG leads profitability with a 3.0% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.53. ABG earns a higher WallStSmart Score of 66/100 (B-).

ABG

Strong Buy

66

out of 100

Grade: B-

Growth: 6.0Profit: 5.0Value: 6.7Quality: 4.5
Piotroski: 3/9Altman Z: 2.50

KMX

Hold

49

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.66
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABGSignificantly Overvalued (-59.3%)

Margin of Safety

-59.3%

Fair Value

$145.86

Current Price

$190.98

$45.12 premium

UndervaluedFair: $145.86Overvalued

Intrinsic value data unavailable for KMX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABG4 strengths · Avg: 9.0/10
P/E RatioValuation
7.0x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

PEG RatioValuation
0.578/10

Growing faster than its price suggests

EPS GrowthGrowth
47.1%8/10

Earnings expanding 47.1% YoY

KMX2 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.538/10

Growing faster than its price suggests

Areas to Watch

ABG4 concerns · Avg: 3.0/10
Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Debt/EquityHealth
1.383/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

KMX4 concerns · Avg: 3.5/10
P/E RatioValuation
30.5x4/10

Premium valuation, high expectations priced in

Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : ABG

The strongest argument for ABG centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.57 suggests the stock is reasonably priced for its growth.

Bull Case : KMX

The strongest argument for KMX centers on Price/Book, PEG Ratio. PEG of 0.53 suggests the stock is reasonably priced for its growth.

Bear Case : ABG

The primary concerns for ABG are Profit Margin, Operating Margin, Debt/Equity. Thin 3.0% margins leave little buffer for downturns.

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 0.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

KMX carries more volatility with a beta of 1.20 — expect wider price swings.

ABG is growing revenue faster at -0.9% — sustainability is the question.

ABG generates stronger free cash flow (174M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ABG scores higher overall (66/100 vs 49/100). Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Asbury Automotive Group Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Asbury Automotive Group, Inc. is an automobile retailer in the United States. The company is headquartered in Duluth, Georgia.

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.

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