Amazon.com Inc (AMZN)vsCarMax Inc (KMX)
AMZN
Amazon.com Inc
$272.05
+0.55%
CONSUMER CYCLICAL · Cap: $2.93T
KMX
CarMax Inc
$37.25
+1.00%
CONSUMER CYCLICAL · Cap: $5.46B
Smart Verdict
WallStSmart Research — data-driven comparison
Amazon.com Inc generates 2576% more annual revenue ($742.78B vs $27.76B). AMZN leads profitability with a 12.2% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.40. AMZN earns a higher WallStSmart Score of 65/100 (C+).
AMZN
Buy65
out of 100
Grade: C+
KMX
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-64.3%
Fair Value
$165.63
Current Price
$272.05
$106.42 premium
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$37.25
$232.82 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Mega-cap, among the largest globally
Earnings expanding 74.8% YoY
Every $100 of equity generates 24 in profit
16.6% revenue growth
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Negative free cash flow — burning cash
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : AMZN
The strongest argument for AMZN centers on Market Cap, EPS Growth, Return on Equity. Revenue growth of 16.6% demonstrates continued momentum.
Bull Case : KMX
The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.40 suggests the stock is reasonably priced for its growth.
Bear Case : AMZN
The primary concerns for AMZN are PEG Ratio, P/E Ratio, Piotroski F-Score.
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.
Key Dynamics to Monitor
AMZN profiles as a growth stock while KMX is a value play — different risk/reward profiles.
AMZN carries more volatility with a beta of 1.47 — expect wider price swings.
AMZN is growing revenue faster at 16.6% — sustainability is the question.
KMX generates stronger free cash flow (-687M), providing more financial flexibility.
Bottom Line
AMZN scores higher overall (65/100 vs 52/100) and 16.6% revenue growth. KMX offers better value entry with a 83.0% margin of safety. Both earn "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.
Amazon.com Inc
CONSUMER CYCLICAL · INTERNET RETAIL · USA
Amazon.com, Inc. is an American multinational technology company which focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Five companies in the U.S. information technology industry, along with Google, Apple, Microsoft, and Facebook. The company has been referred to as one of the most influential economic and cultural forces in the world, as well as the world's most valuable brand.
Visit Website →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 →Compare with Other INTERNET RETAIL Stocks
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