WallStSmart

Copart Inc (CPRT)vsLegalZoom.com Inc (LZ)

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Smart Verdict

WallStSmart Research — data-driven comparison

Copart Inc generates 489% more annual revenue ($4.67B vs $792.49M). CPRT leads profitability with a 31.8% profit margin vs 2.1%. CPRT trades at a lower P/E of 18.0x. CPRT earns a higher WallStSmart Score of 60/100 (C).

CPRT

Buy

60

out of 100

Grade: C

Growth: 4.0Profit: 9.0Value: 6.7Quality: 8.5
Piotroski: 3/9Altman Z: 8.75

LZ

Hold

37

out of 100

Grade: F

Growth: 4.7Profit: 5.5Value: 5.0Quality: 4.5
Piotroski: 3/9Altman Z: -1.25
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CPRTUndervalued (+76.1%)

Margin of Safety

+76.1%

Fair Value

$165.55

Current Price

$28.96

$136.59 discount

UndervaluedFair: $165.55Overvalued
LZUndervalued (+25.6%)

Margin of Safety

+25.6%

Fair Value

$9.56

Current Price

$6.61

$2.95 discount

UndervaluedFair: $9.56Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CPRT6 strengths · Avg: 9.3/10
Profit MarginProfitability
31.8%10/10

Keeps 32 of every $100 in revenue as profit

Operating MarginProfitability
32.0%10/10

Strong operational efficiency at 32.0%

Debt/EquityHealth
0.0110/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
8.7510/10

Safe zone — low bankruptcy risk

P/E RatioValuation
18.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

LZ1 strengths · Avg: 9.0/10
Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

Areas to Watch

CPRT4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.832/10

Expensive relative to growth rate

EPS GrowthGrowth
-15.0%2/10

Earnings declined 15.0%

LZ4 concerns · Avg: 3.3/10
Price/BookValuation
8.7x4/10

Trading at 8.7x book value

Market CapQuality
$1.06B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CPRT

The strongest argument for CPRT centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.8% and operating margin at 32.0%.

Bull Case : LZ

The strongest argument for LZ centers on Debt/Equity.

Bear Case : CPRT

The primary concerns for CPRT are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : LZ

The primary concerns for LZ are Price/Book, Market Cap, Profit Margin. A P/E of 68.9x leaves little room for execution misses. Thin 2.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

LZ carries more volatility with a beta of 1.21 — expect wider price swings.

LZ is growing revenue faster at 6.6% — sustainability is the question.

CPRT generates stronger free cash flow (279M), providing more financial flexibility.

Monitor SPECIALTY BUSINESS SERVICES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

CPRT scores higher overall (60/100 vs 37/100), backed by strong 31.8% margins. LZ offers better value entry with a 25.6% margin of safety. 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.

Copart Inc

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

Copart, Inc. or simply Copart is a global provider of online vehicle auction and remarketing services to automotive resellers such as insurance, rental car, fleet and finance companies in 11 countries: the US, Canada, the UK, Germany, Ireland, Brazil, Spain, Dubai, Bahrain, Oman and Finland.

LegalZoom.com Inc

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company is headquartered in Glendale, California.

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