WallStSmart

Edwards Lifesciences Corp (EW)vsCarMax Inc (KMX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 340% more annual revenue ($27.76B vs $6.30B). EW leads profitability with a 17.4% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. EW earns a higher WallStSmart Score of 61/100 (C+).

EW

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 6.0Quality: 4.8
Piotroski: 2/9

KMX

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 8.7Quality: 4.5
Piotroski: 3/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EWUndervalued (+69.7%)

Margin of Safety

+69.7%

Fair Value

$261.90

Current Price

$79.96

$181.94 discount

UndervaluedFair: $261.90Overvalued
KMXUndervalued (+83.0%)

Margin of Safety

+83.0%

Fair Value

$270.07

Current Price

$40.34

$229.73 discount

UndervaluedFair: $270.07Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EW2 strengths · Avg: 9.0/10
Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

KMX2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Areas to Watch

EW4 concerns · Avg: 2.8/10
PEG RatioValuation
2.044/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
44.7x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-21.10M2/10

Negative free cash flow — burning cash

KMX4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Return on EquityProfitability
4.1%3/10

ROE of 4.1% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

Comparative Analysis Report

WallStSmart Research

Bull Case : EW

The strongest argument for EW centers on Operating Margin, Revenue Growth. Profitability is solid with margins at 17.4% and operating margin at 31.2%. Revenue growth of 16.7% demonstrates continued momentum.

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 : EW

The primary concerns for EW are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 44.7x 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

EW profiles as a growth 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.

EW is growing revenue faster at 16.7% — sustainability is the question.

EW generates stronger free cash flow (-21M), providing more financial flexibility.

Bottom Line

EW scores higher overall (61/100 vs 52/100), backed by strong 17.4% margins and 16.7% 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.

Edwards Lifesciences Corp

HEALTHCARE · MEDICAL DEVICES · USA

Edwards Lifesciences is an American medical technology company headquartered in Irvine, California, specializing in artificial heart valves and hemodynamic monitoring.

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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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