CarMax Inc (KMX)vsPenske Automotive Group Inc (PAG)
KMX
CarMax Inc
$41.86
-1.23%
CONSUMER CYCLICAL · Cap: $6.15B
PAG
Penske Automotive Group Inc
$140.60
-2.57%
CONSUMER CYCLICAL · Cap: $9.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 14% more annual revenue ($31.81B vs $27.83B). PAG leads profitability with a 2.9% profit margin vs 1.6%. KMX appears more attractively valued with a PEG of 0.65. KMX earns a higher WallStSmart Score of 54/100 (C-).
KMX
Buy54
out of 100
Grade: C-
PAG
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-123.7%
Fair Value
$20.47
Current Price
$41.86
$21.39 premium
Margin of Safety
-85.1%
Fair Value
$93.57
Current Price
$140.60
$47.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Distress zone — elevated risk
ROE of 7.5% — below average capital efficiency
1.6% margin — thin
Operating margin of 1.8%
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.4%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : KMX
The strongest argument for KMX centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.65 suggests the stock is reasonably priced for its growth.
Bull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
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 1.6% margins leave little buffer for downturns.
Bear Case : PAG
The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.33 — expect wider price swings.
PAG is growing revenue faster at -3.1% — sustainability is the question.
KMX generates stronger free cash flow (1.1B), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KMX scores higher overall (54/100 vs 51/100). 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 →Penske Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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