CarMax Inc (KMX)vsQnity Electronics, Inc (Q)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
Q
Qnity Electronics, Inc
$143.59
-3.91%
TECHNOLOGY · Cap: $30.10B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 484% more annual revenue ($27.76B vs $4.75B). Q leads profitability with a 14.6% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. KMX earns a higher WallStSmart Score of 52/100 (C-).
KMX
Buy52
out of 100
Grade: C-
Q
Hold49
out of 100
Grade: D+
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
-9.0%
Fair Value
$105.09
Current Price
$143.59
$38.50 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 20.4%
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
ROE of 8.0% — below average capital efficiency
Expensive relative to growth rate
Premium valuation, high expectations priced in
Earnings declined 52.8%
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 : Q
The strongest argument for Q centers on 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 : Q
The primary concerns for Q are Return on Equity, PEG Ratio, P/E Ratio. A P/E of 43.5x leaves little room for execution misses.
Key Dynamics to Monitor
Q is growing revenue faster at 8.1% — sustainability is the question.
Q generates stronger free cash flow (420M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KMX scores higher overall (52/100 vs 49/100). Both earn "Buy" and "Hold" 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 →Qnity Electronics, Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
IQVIA Holdings Inc. provides integrated information and technology-enabled healthcare services in the Americas, Europe, Africa, and Asia-Pacific. The company is headquartered in Durham, North Carolina.
Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
Want to dig deeper into these stocks?