WallStSmart

CarMax Inc (KMX)vsMarvell Technology Group Ltd (MRVL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 239% more annual revenue ($27.76B vs $8.19B). MRVL leads profitability with a 32.6% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. MRVL earns a higher WallStSmart Score of 66/100 (B-).

KMX

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 8.7Quality: 4.5
Piotroski: 3/9Altman Z: 1.53

MRVL

Strong Buy

66

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 2.7Quality: 7.0
Piotroski: 5/9Altman Z: 1.80
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KMXUndervalued (+83.0%)

Margin of Safety

+83.0%

Fair Value

$270.07

Current Price

$40.34

$229.73 discount

UndervaluedFair: $270.07Overvalued
MRVLSignificantly Overvalued (-86.7%)

Margin of Safety

-86.7%

Fair Value

$43.57

Current Price

$170.13

$126.56 premium

UndervaluedFair: $43.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMX2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

MRVL4 strengths · Avg: 9.3/10
Profit MarginProfitability
32.6%10/10

Keeps 33 of every $100 in revenue as profit

EPS GrowthGrowth
106.3%10/10

Earnings expanding 106.3% YoY

Market CapQuality
$139.92B9/10

Large-cap with strong market position

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

Areas to Watch

KMX4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Return on EquityProfitability
4.1%3/10

ROE of 4.1% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

MRVL4 concerns · Avg: 3.5/10
PEG RatioValuation
1.984/10

Expensive relative to growth rate

Price/BookValuation
10.1x4/10

Trading at 10.1x book value

Altman Z-ScoreHealth
1.804/10

Grey zone — moderate risk

P/E RatioValuation
52.3x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : MRVL

The strongest argument for MRVL centers on Profit Margin, EPS Growth, Market Cap. Profitability is solid with margins at 32.6% and operating margin at 18.7%. Revenue growth of 22.1% demonstrates continued momentum.

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 : MRVL

The primary concerns for MRVL are PEG Ratio, Price/Book, Altman Z-Score. A P/E of 52.3x leaves little room for execution misses.

Key Dynamics to Monitor

KMX profiles as a value stock while MRVL is a growth play — different risk/reward profiles.

MRVL carries more volatility with a beta of 2.25 — expect wider price swings.

MRVL is growing revenue faster at 22.1% — sustainability is the question.

MRVL generates stronger free cash flow (259M), providing more financial flexibility.

Bottom Line

MRVL scores higher overall (66/100 vs 52/100), backed by strong 32.6% margins and 22.1% 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.

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 →

Marvell Technology Group Ltd

TECHNOLOGY · SEMICONDUCTORS · USA

Marvell Technology, Inc. designs, develops, and sells analog, mixed-signal, digital signal processing, and integrated and independent integrated circuits. The company is headquartered in Wilmington, Delaware.

Visit Website →

Want to dig deeper into these stocks?