CarMax Inc (KMX)vsMotorola Solutions Inc (MSI)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
MSI
Motorola Solutions Inc
$383.99
-11.36%
TECHNOLOGY · Cap: $72.00B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 138% more annual revenue ($27.76B vs $11.68B). MSI leads profitability with a 18.4% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. MSI earns a higher WallStSmart Score of 62/100 (C+).
KMX
Buy52
out of 100
Grade: C-
MSI
Buy62
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
Intrinsic value data unavailable for MSI.
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 104 in profit
Large-cap with strong market position
Strong operational efficiency at 27.8%
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
Trading at 26.4x book value
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 : MSI
The strongest argument for MSI centers on Return on Equity, Market Cap, Operating Margin. Profitability is solid with margins at 18.4% and operating margin at 27.8%. Revenue growth of 12.3% 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 : MSI
The primary concerns for MSI are PEG Ratio, P/E Ratio, Piotroski F-Score. Debt-to-equity of 4.05 is elevated, increasing financial risk.
Key Dynamics to Monitor
KMX profiles as a value stock while MSI is a mature play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
MSI is growing revenue faster at 12.3% — sustainability is the question.
MSI generates stronger free cash flow (389M), providing more financial flexibility.
Bottom Line
MSI scores higher overall (62/100 vs 52/100), backed by strong 18.4% margins and 12.3% 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 →Motorola Solutions Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Motorola Solutions, Inc., is an American data communications and telecommunications equipment provider that succeeded Motorola, Inc., following the spinoff of the mobile phone division into Motorola Mobility in 2011. The company is headquartered in Chicago, Illinois.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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