WallStSmart

Floor & Decor Holdings Inc (FND)vsKAR Auction Services Inc (KAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Floor & Decor Holdings Inc generates 147% more annual revenue ($4.68B vs $1.90B). FND leads profitability with a 4.3% profit margin vs 0.1%. KAR appears more attractively valued with a PEG of 1.34. KAR earns a higher WallStSmart Score of 65/100 (B-).

FND

Hold

40

out of 100

Grade: D

Growth: 2.7Profit: 4.5Value: 6.0Quality: 5.5
Piotroski: 3/9Altman Z: 2.05

KAR

Strong Buy

65

out of 100

Grade: B-

Growth: 4.7Profit: 4.0Value: 4.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FNDUndervalued (+15.3%)

Margin of Safety

+15.3%

Fair Value

$81.36

Current Price

$47.41

$33.95 discount

UndervaluedFair: $81.36Overvalued
KARSignificantly Overvalued (-65.7%)

Margin of Safety

-65.7%

Fair Value

$18.64

Current Price

$30.88

$12.24 premium

UndervaluedFair: $18.64Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FND1 strengths · Avg: 8.0/10
Price/BookValuation
2.1x8/10

Reasonable price relative to book value

KAR1 strengths · Avg: 8.0/10
Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

FND4 concerns · Avg: 3.5/10
PEG RatioValuation
2.204/10

Expensive relative to growth rate

P/E RatioValuation
29.0x4/10

Moderate valuation

Profit MarginProfitability
4.3%3/10

4.3% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

KAR4 concerns · Avg: 3.8/10
P/E RatioValuation
35.5x4/10

Premium valuation, high expectations priced in

Revenue GrowthGrowth
0.1%4/10

0.1% revenue growth

EPS GrowthGrowth
1.1%4/10

1.1% earnings growth

Return on EquityProfitability
0.1%3/10

ROE of 0.1% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : FND

The strongest argument for FND centers on Price/Book.

Bull Case : KAR

The strongest argument for KAR centers on Price/Book. PEG of 1.34 suggests the stock is reasonably priced for its growth.

Bear Case : FND

The primary concerns for FND are PEG Ratio, P/E Ratio, Profit Margin. Thin 4.3% margins leave little buffer for downturns.

Bear Case : KAR

The primary concerns for KAR are P/E Ratio, Revenue Growth, EPS Growth. Thin 0.1% margins leave little buffer for downturns.

Key Dynamics to Monitor

FND carries more volatility with a beta of 1.62 — expect wider price swings.

KAR is growing revenue faster at 0.1% — sustainability is the question.

KAR generates stronger free cash flow (111M), providing more financial flexibility.

Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

KAR scores higher overall (65/100 vs 40/100). FND offers better value entry with a 15.3% margin of safety. Both earn "Strong Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Floor & Decor Holdings Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

Floor & Decor Holdings, Inc. is a multi-channel specialty retailer of hard surface flooring and related accessories. The company is headquartered in Atlanta, Georgia.

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KAR Auction Services Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

KAR Auction Services, Inc. provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company is headquartered in Carmel, Indiana.

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