WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 3564% more annual revenue ($27.83B vs $759.61M). KMX leads profitability with a 1.6% profit margin vs -8.7%. KMX earns a higher WallStSmart Score of 54/100 (C-).

ACVA

Hold

39

out of 100

Grade: F

Growth: 7.3Profit: 2.0Value: 5.0Quality: 4.8
Piotroski: 4/9Altman Z: 0.62

KMX

Buy

54

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 7.3Quality: 5.0
Piotroski: 5/9Altman Z: 1.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ACVA.

KMXSignificantly Overvalued (-120.8%)

Margin of Safety

-120.8%

Fair Value

$20.74

Current Price

$41.88

$21.14 premium

UndervaluedFair: $20.74Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACVA2 strengths · Avg: 8.0/10
Price/BookValuation
1.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.1%8/10

15.1% revenue growth

KMX4 strengths · Avg: 8.5/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.668/10

Growing faster than its price suggests

P/E RatioValuation
13.8x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$1.11B8/10

Generating 1.1B in free cash flow

Areas to Watch

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

0.0% earnings growth

Market CapQuality
$764.17M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-15.2%2/10

ROE of -15.2% — below average capital efficiency

Free Cash FlowQuality
$-23.38M2/10

Negative free cash flow — burning cash

KMX4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.644/10

Distress zone — elevated risk

Return on EquityProfitability
7.5%3/10

ROE of 7.5% — below average capital efficiency

Profit MarginProfitability
1.6%3/10

1.6% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : ACVA

The strongest argument for ACVA centers on Price/Book, Revenue Growth. Revenue growth of 15.1% demonstrates continued momentum.

Bull 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.

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 2.75 is elevated, increasing financial risk. Thin 1.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

ACVA carries more volatility with a beta of 1.69 — expect wider price swings.

ACVA is growing revenue faster at 15.1% — sustainability is the question.

KMX generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

KMX scores higher overall (54/100 vs 39/100). Both earn "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.

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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