Alphabet Inc Class C (GOOG)vsCarMax Inc (KMX)
GOOG
Alphabet Inc Class C
$397.05
+0.44%
COMMUNICATION SERVICES · Cap: $4.79T
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Alphabet Inc Class C generates 1422% more annual revenue ($422.50B vs $27.76B). GOOG leads profitability with a 37.9% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. GOOG earns a higher WallStSmart Score of 73/100 (B).
GOOG
Strong Buy73
out of 100
Grade: B
KMX
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+2.1%
Fair Value
$405.59
Current Price
$397.05
$8.54 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
Mega-cap, among the largest globally
Every $100 of equity generates 39 in profit
Keeps 38 of every $100 in revenue as profit
Strong operational efficiency at 36.1%
Earnings expanding 82.0% YoY
Generating 10.1B in free cash flow
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 11.6x book value
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 : GOOG
The strongest argument for GOOG centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 36.1%. Revenue growth of 21.8% 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 : GOOG
The primary concerns for GOOG are PEG Ratio, P/E Ratio, Price/Book.
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
GOOG profiles as a growth stock while KMX is a value play — different risk/reward profiles.
GOOG carries more volatility with a beta of 1.27 — expect wider price swings.
GOOG is growing revenue faster at 21.8% — sustainability is the question.
GOOG generates stronger free cash flow (10.1B), providing more financial flexibility.
Bottom Line
GOOG scores higher overall (73/100 vs 52/100), backed by strong 37.9% margins and 21.8% revenue growth. KMX offers better value entry with a 83.0% margin of safety. 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.
Alphabet Inc Class C
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world's fourth-largest technology company by revenue and one of the world's most valuable companies.
Visit Website →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.
Visit Website →Compare with Other INTERNET CONTENT & INFORMATION Stocks
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