WallStSmart

ACV Auctions Inc. (ACVA)vsCarMax Inc (KMX)

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Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 3576% more annual revenue ($29.46B vs $801.34M). KMX leads profitability with a 1.0% profit margin vs -7.9%. KMX earns a higher WallStSmart Score of 65/100 (B-).

ACVA

Avoid

32

out of 100

Grade: F

Growth: 6.7Profit: 2.0Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: 0.47

KMX

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 4.0Value: 6.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACVAUndervalued (+57.1%)

Margin of Safety

+57.1%

Fair Value

$16.78

Current Price

$10.50

$6.28 discount

UndervaluedFair: $16.78Overvalued

Intrinsic value data unavailable for KMX.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACVA0 strengths · Avg: 0/10

No standout strengths identified

KMX4 strengths · Avg: 9.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

EPS GrowthGrowth
81.6%10/10

Earnings expanding 81.6% YoY

PEG RatioValuation
0.618/10

Growing faster than its price suggests

Revenue GrowthGrowth
17.7%8/10

17.7% revenue growth

Areas to Watch

ACVA4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.78B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-14.4%2/10

ROE of -14.4% — below average capital efficiency

Free Cash FlowQuality
$-44.15M2/10

Negative free cash flow — burning cash

KMX4 concerns · Avg: 3.3/10
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
1.0%3/10

1.0% margin — thin

Operating MarginProfitability
2.8%3/10

Operating margin of 2.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACVA

Revenue growth of 10.4% demonstrates continued momentum.

Bull Case : KMX

The strongest argument for KMX centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 17.7% demonstrates continued momentum. PEG of 0.61 suggests the stock is reasonably priced for its growth.

Bear Case : ACVA

The primary concerns for ACVA are EPS Growth, Market Cap, Return on Equity.

Bear Case : KMX

The primary concerns for KMX are Altman Z-Score, Return on Equity, Profit Margin. Debt-to-equity of 2.83 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACVA profiles as a turnaround stock while KMX is a growth play — different risk/reward profiles.

ACVA carries more volatility with a beta of 1.76 — expect wider price swings.

KMX is growing revenue faster at 17.7% — sustainability is the question.

KMX generates stronger free cash flow (806M), providing more financial flexibility.

Bottom Line

KMX scores higher overall (65/100 vs 32/100) and 17.7% revenue growth. ACVA offers better value entry with a 57.1% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

ACV Auctions Inc.

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

ACV Auctions, Inc., operates a digital marketplace that connects buyers and sellers for online wholesale vehicle auctions. The company is headquartered in Buffalo, New York.

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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