Carvana Co (CVNA)vsCarMax Inc (KMX)
CVNA
Carvana Co
$376.55
-1.58%
CONSUMER CYCLICAL · Cap: $84.54B
KMX
CarMax Inc
$37.25
+1.00%
CONSUMER CYCLICAL · Cap: $5.46B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 23% more annual revenue ($27.76B vs $22.52B). CVNA leads profitability with a 6.4% profit margin vs 0.9%. KMX trades at a lower P/E of 22.9x. CVNA earns a higher WallStSmart Score of 56/100 (C).
CVNA
Buy56
out of 100
Grade: C
KMX
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-44.4%
Fair Value
$252.13
Current Price
$376.55
$124.42 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
Every $100 of equity generates 60 in profit
Revenue surging 52.0% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Trading at 14.5x book value
6.4% margin — thin
Premium valuation, high expectations priced in
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 : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 52.0% 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 : CVNA
The primary concerns for CVNA are Price/Book, Profit Margin, P/E Ratio. A P/E of 44.2x leaves little room for execution misses.
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
CVNA profiles as a hypergrowth stock while KMX is a value play — different risk/reward profiles.
CVNA carries more volatility with a beta of 3.55 — expect wider price swings.
CVNA is growing revenue faster at 52.0% — sustainability is the question.
CVNA generates stronger free cash flow (56M), providing more financial flexibility.
Bottom Line
CVNA scores higher overall (56/100 vs 52/100) and 52.0% 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.
Carvana Co
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.
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 AUTO & TRUCK DEALERSHIPS Stocks
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