WallStSmart

AutoNation Inc (AN)vsCarMax Inc (KMX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 0% more annual revenue ($27.76B vs $27.63B). AN leads profitability with a 2.4% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.40. AN earns a higher WallStSmart Score of 55/100 (C).

AN

Buy

55

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 8.0Quality: 5.3
Piotroski: 3/9Altman Z: 3.01

KMX

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 8.7Quality: 4.5
Piotroski: 3/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANUndervalued (+13.1%)

Margin of Safety

+13.1%

Fair Value

$239.19

Current Price

$202.28

$36.91 discount

UndervaluedFair: $239.19Overvalued
KMXUndervalued (+83.0%)

Margin of Safety

+83.0%

Fair Value

$270.07

Current Price

$37.25

$232.82 discount

UndervaluedFair: $270.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN4 strengths · Avg: 9.3/10
P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.1%9/10

Every $100 of equity generates 27 in profit

PEG RatioValuation
0.788/10

Growing faster than its price suggests

KMX2 strengths · Avg: 10.0/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Areas to Watch

AN4 concerns · Avg: 3.3/10
EPS GrowthGrowth
1.3%4/10

1.3% earnings growth

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

KMX4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Return on EquityProfitability
4.1%3/10

ROE of 4.1% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 0.78 suggests the stock is reasonably priced for its growth.

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 : AN

The primary concerns for AN are EPS Growth, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.

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

KMX carries more volatility with a beta of 1.30 — expect wider price swings.

KMX is growing revenue faster at -1.2% — sustainability is the question.

AN generates stronger free cash flow (-34M), providing more financial flexibility.

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

Bottom Line

AN scores higher overall (55/100 vs 52/100). 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.

AutoNation Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.

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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