AutoNation Inc (AN)vsCarMax Inc (KMX)
AN
AutoNation Inc
$215.76
+0.08%
CONSUMER CYCLICAL · Cap: $7.11B
KMX
CarMax Inc
$58.43
+2.04%
CONSUMER CYCLICAL · Cap: $8.13B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 3% more annual revenue ($28.20B vs $27.45B). AN leads profitability with a 2.8% profit margin vs 0.8%. KMX appears more attractively valued with a PEG of 0.56. AN earns a higher WallStSmart Score of 63/100 (C+).
AN
Buy63
out of 100
Grade: C+
KMX
Buy53
out of 100
Grade: C-
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 138.4% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
2.8% margin — thin
Operating margin of 4.5%
Weak financial health signals
Revenue declined 0.6%
Premium valuation, high expectations priced in
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
0.8% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : AN
The strongest argument for AN centers on P/E Ratio, Return on Equity, EPS Growth. PEG of 0.78 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 0.56 suggests the stock is reasonably priced for its growth.
Bear Case : AN
The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Debt-to-equity of 4.71 is elevated, increasing financial risk. Thin 2.8% 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 0.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.16 — expect wider price swings.
KMX is growing revenue faster at 5.5% — 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 (63/100 vs 53/100). 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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