AutoNation Inc (AN)vsCarMax Inc (KMX)
AN
AutoNation Inc
$181.46
-1.77%
CONSUMER CYCLICAL · Cap: $6.30B
KMX
CarMax Inc
$41.86
-1.23%
CONSUMER CYCLICAL · Cap: $6.15B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 1% more annual revenue ($27.83B vs $27.63B). AN leads profitability with a 2.4% profit margin vs 1.6%. KMX appears more attractively valued with a PEG of 0.65. AN earns a higher WallStSmart Score of 58/100 (C).
AN
Buy58
out of 100
Grade: C
KMX
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.3%
Fair Value
$151.32
Current Price
$181.46
$30.14 premium
Margin of Safety
-123.7%
Fair Value
$20.47
Current Price
$41.86
$21.39 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 130.0% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Areas to Watch
2.4% margin — thin
Operating margin of 4.0%
Weak financial health signals
Revenue declined 3.9%
Distress zone — elevated risk
ROE of 7.5% — below average capital efficiency
1.6% margin — thin
Operating margin of 1.8%
Comparative Analysis Report
WallStSmart ResearchBull Case : AN
The strongest argument for AN centers on P/E Ratio, EPS Growth, Altman Z-Score. PEG of 0.68 suggests the stock is reasonably priced for its growth.
Bull Case : KMX
The strongest argument for KMX centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.65 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. 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 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.33 — expect wider price swings.
AN is growing revenue faster at -3.9% — sustainability is the question.
KMX generates stronger free cash flow (1.1B), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AN scores higher overall (58/100 vs 54/100). 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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