Driven Brands Holdings Inc (DRVN)vsCarMax Inc (KMX)
DRVN
Driven Brands Holdings Inc
$13.41
-2.47%
CONSUMER CYCLICAL · Cap: $2.26B
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 1038% more annual revenue ($27.76B vs $2.44B). KMX leads profitability with a 0.9% profit margin vs -8.1%. KMX appears more attractively valued with a PEG of 0.38. DRVN earns a higher WallStSmart Score of 59/100 (C).
DRVN
Buy59
out of 100
Grade: C
KMX
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+38.9%
Fair Value
$27.66
Current Price
$13.41
$14.25 discount
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$40.34
$229.73 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 56.9% YoY
Reasonable price relative to book value
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
ROE of -27.3% — below average capital efficiency
Currently unprofitable
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 : DRVN
The strongest argument for DRVN centers on EPS Growth, Price/Book. PEG of 1.08 suggests the stock is reasonably priced for its growth.
Bull Case : KMX
The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.38 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 0.9% 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 1.18 — expect wider price swings.
DRVN is growing revenue faster at 6.6% — sustainability is the question.
DRVN generates stronger free cash flow (39M), providing more financial flexibility.
Bottom Line
DRVN scores higher overall (59/100 vs 52/100). 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.
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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