CarMax Inc (KMX)vs3M Company (MMM)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
MMM
3M Company
$143.29
-0.32%
INDUSTRIALS · Cap: $74.98B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 11% more annual revenue ($27.76B vs $25.02B). MMM leads profitability with a 11.1% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. MMM earns a higher WallStSmart Score of 56/100 (C).
KMX
Buy52
out of 100
Grade: C-
MMM
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$40.34
$229.73 discount
Margin of Safety
-31.4%
Fair Value
$131.53
Current Price
$143.29
$11.76 premium
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 72 in profit
Large-cap with strong market position
Strong operational efficiency at 23.3%
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Moderate valuation
1.3% revenue growth
Trading at 22.9x book value
Earnings declined 39.7%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : MMM
The strongest argument for MMM centers on Return on Equity, Market Cap, Operating Margin.
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 : MMM
The primary concerns for MMM are P/E Ratio, Revenue Growth, Price/Book. Debt-to-equity of 2.75 is elevated, increasing financial risk.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
MMM is growing revenue faster at 1.3% — sustainability is the question.
MMM generates stronger free cash flow (349M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
MMM scores higher overall (56/100 vs 52/100). 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 →3M Company
INDUSTRIALS · CONGLOMERATES · USA
The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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