CarMax Inc (KMX)vsMercadoLibre Inc. (MELI)
KMX
CarMax Inc
$37.25
+1.00%
CONSUMER CYCLICAL · Cap: $5.46B
MELI
MercadoLibre Inc.
$1,813.53
-1.97%
CONSUMER CYCLICAL · Cap: $91.94B
Smart Verdict
WallStSmart Research — data-driven comparison
MercadoLibre Inc. generates 4% more annual revenue ($28.89B vs $27.76B). MELI leads profitability with a 6.9% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.40. MELI earns a higher WallStSmart Score of 60/100 (C+).
KMX
Buy52
out of 100
Grade: C-
MELI
Buy60
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$37.25
$232.82 discount
Margin of Safety
+59.3%
Fair Value
$4955.41
Current Price
$1813.53
$3141.88 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 36 in profit
Revenue surging 44.6% year-over-year
Large-cap with strong market position
Generating 4.8B in free cash flow
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Trading at 13.6x book value
6.9% margin — thin
Weak financial health signals
Premium valuation, high expectations priced in
Comparative Analysis Report
WallStSmart ResearchBull Case : KMX
The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.40 suggests the stock is reasonably priced for its growth.
Bull Case : MELI
The strongest argument for MELI centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 44.6% demonstrates continued momentum. PEG of 1.14 suggests the stock is reasonably priced for its growth.
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.
Bear Case : MELI
The primary concerns for MELI are Price/Book, Profit Margin, Piotroski F-Score. A P/E of 47.0x leaves little room for execution misses.
Key Dynamics to Monitor
KMX profiles as a value stock while MELI is a hypergrowth play — different risk/reward profiles.
MELI carries more volatility with a beta of 1.41 — expect wider price swings.
MELI is growing revenue faster at 44.6% — sustainability is the question.
MELI generates stronger free cash flow (4.8B), providing more financial flexibility.
Bottom Line
MELI scores higher overall (60/100 vs 52/100) and 44.6% 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.
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 →MercadoLibre Inc.
CONSUMER CYCLICAL · INTERNET RETAIL · USA
MercadoLibre, Inc. operates online trading platforms in Latin America. The company is headquartered in Buenos Aires, Argentina.
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