WallStSmart

KAR Auction Services Inc (KAR)vsLowe's Companies Inc (LOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 4566% more annual revenue ($88.43B vs $1.90B). LOW leads profitability with a 7.5% 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-).

KAR

Strong Buy

65

out of 100

Grade: B-

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

LOW

Hold

50

out of 100

Grade: D+

Growth: 3.3Profit: 5.5Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 1.88
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KARSignificantly Overvalued (-65.7%)

Margin of Safety

-65.7%

Fair Value

$18.64

Current Price

$30.88

$12.24 premium

UndervaluedFair: $18.64Overvalued
LOWSignificantly Overvalued (-50.6%)

Margin of Safety

-50.6%

Fair Value

$139.97

Current Price

$210.74

$70.77 premium

UndervaluedFair: $139.97Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

Reasonable price relative to book value

LOW4 strengths · Avg: 8.8/10
Debt/EquityHealth
-4.5910/10

Conservative balance sheet, low leverage

Market CapQuality
$115.86B9/10

Large-cap with strong market position

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$2.83B8/10

Generating 2.8B in free cash flow

Areas to Watch

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

LOW4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.884/10

Grey zone — moderate risk

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
7.5%3/10

7.5% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : LOW

The strongest argument for LOW centers on Debt/Equity, Market Cap, P/E Ratio. Revenue growth of 10.3% demonstrates continued momentum. PEG of 1.36 suggests the stock is reasonably priced for its growth.

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.

Bear Case : LOW

The primary concerns for LOW are Altman Z-Score, Return on Equity, Profit Margin.

Key Dynamics to Monitor

KAR carries more volatility with a beta of 1.25 — expect wider price swings.

LOW is growing revenue faster at 10.3% — sustainability is the question.

LOW generates stronger free cash flow (2.8B), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

KAR scores higher overall (65/100 vs 50/100). 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.

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.

Lowe's Companies Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.

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