Driven Brands Holdings Inc (DRVN)vsCarMax Inc (KMX)
DRVN
Driven Brands Holdings Inc
$12.76
+3.07%
CONSUMER CYCLICAL · Cap: $2.10B
KMX
CarMax Inc
$41.88
-0.52%
CONSUMER CYCLICAL · Cap: $6.18B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 1041% more annual revenue ($27.83B vs $2.44B). KMX leads profitability with a 1.6% profit margin vs -8.1%. KMX earns a higher WallStSmart Score of 54/100 (C-).
DRVN
Buy51
out of 100
Grade: C-
KMX
Buy54
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for DRVN.
Margin of Safety
-120.8%
Fair Value
$20.74
Current Price
$41.88
$21.14 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 56.9% YoY
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
ROE of -27.3% — below average capital efficiency
Currently unprofitable
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 : DRVN
The strongest argument for DRVN centers on EPS Growth, Price/Book.
Bull Case : KMX
The strongest argument for KMX centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.
Bear Case : DRVN
The primary concerns for DRVN are Return on Equity, Profit Margin.
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
DRVN profiles as a turnaround stock while KMX is a value play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.33 — expect wider price swings.
DRVN is growing revenue faster at 6.6% — sustainability is the question.
KMX generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
KMX scores higher overall (54/100 vs 51/100). 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.
Driven Brands Holdings Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Driven Brands Holdings Inc. provides automotive services to retail and commercial clients in North America and internationally. The company is headquartered in Charlotte, North Carolina.
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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