Driven Brands Holdings Inc (DRVN)vsCarMax Inc (KMX)
DRVN
Driven Brands Holdings Inc
$11.89
-1.57%
CONSUMER CYCLICAL · Cap: $1.99B
KMX
CarMax Inc
$51.48
-2.13%
CONSUMER CYCLICAL · Cap: $7.97B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 1425% more annual revenue ($29.46B vs $1.93B). DRVN leads profitability with a 8.6% profit margin vs 1.0%. KMX appears more attractively valued with a PEG of 0.68. KMX earns a higher WallStSmart Score of 65/100 (B-).
DRVN
Buy62
out of 100
Grade: C+
KMX
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-5.6%
Fair Value
$16.02
Current Price
$11.89
$4.13 premium
Intrinsic value data unavailable for KMX.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 20 in profit
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Reasonable price relative to book value
Earnings expanding 81.6% YoY
Growing faster than its price suggests
17.7% revenue growth
Areas to Watch
Smaller company, higher risk/reward
Earnings declined 37.0%
Distress zone — elevated risk
Elevated debt levels
Moderate valuation
Distress zone — elevated risk
ROE of 4.2% — below average capital efficiency
1.0% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : DRVN
The strongest argument for DRVN centers on Return on Equity, PEG Ratio, P/E Ratio. PEG of 0.93 suggests the stock is reasonably priced for its growth.
Bull Case : KMX
The strongest argument for KMX centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 17.7% demonstrates continued momentum. PEG of 0.68 suggests the stock is reasonably priced for its growth.
Bear Case : DRVN
The primary concerns for DRVN are Market Cap, EPS Growth, Altman Z-Score. Debt-to-equity of 2.66 is elevated, increasing financial risk.
Bear Case : KMX
The primary concerns for KMX are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 2.83 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
DRVN profiles as a value stock while KMX is a growth play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.23 — expect wider price swings.
KMX is growing revenue faster at 17.7% — sustainability is the question.
KMX generates stronger free cash flow (806M), providing more financial flexibility.
Bottom Line
KMX scores higher overall (65/100 vs 62/100) and 17.7% revenue growth. Both earn "Strong 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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