CarMax Inc (KMX)vsPalo Alto Networks Inc (PANW)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
PANW
Palo Alto Networks Inc
$207.88
+5.78%
TECHNOLOGY · Cap: $159.39B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 181% more annual revenue ($27.76B vs $9.89B). PANW leads profitability with a 13.0% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. PANW earns a higher WallStSmart Score of 56/100 (C).
KMX
Buy52
out of 100
Grade: C-
PANW
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
+54.1%
Fair Value
$452.64
Current Price
$207.88
$244.76 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Earnings expanding 60.5% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
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 15.6x book value
Weak financial health signals
Expensive relative to growth rate
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 0.38 suggests the stock is reasonably priced for its growth.
Bull Case : PANW
The strongest argument for PANW centers on EPS Growth, Debt/Equity, Market Cap. Revenue growth of 14.9% 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 : PANW
The primary concerns for PANW are Price/Book, Piotroski F-Score, PEG Ratio. A P/E of 109.2x leaves little room for execution misses.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
PANW is growing revenue faster at 14.9% — sustainability is the question.
PANW generates stronger free cash flow (470M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PANW scores higher overall (56/100 vs 52/100) and 14.9% 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 →Palo Alto Networks Inc
TECHNOLOGY · SOFTWARE - INFRASTRUCTURE · USA
Palo Alto Networks, Inc. provides cybersecurity platform solutions globally. The company is headquartered in Santa Clara, California.
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