CarMax Inc (KMX)vsRestaurant Brands International Inc (QSR)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
QSR
Restaurant Brands International Inc
$79.71
+0.72%
CONSUMER CYCLICAL · Cap: $36.11B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 189% more annual revenue ($27.76B vs $9.59B). QSR leads profitability with a 10.0% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. QSR earns a higher WallStSmart Score of 70/100 (B).
KMX
Buy52
out of 100
Grade: C-
QSR
Strong Buy70
out of 100
Grade: B
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
+33.6%
Fair Value
$106.48
Current Price
$79.71
$26.77 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 100.0% YoY
Every $100 of equity generates 28 in profit
Growing faster than its price suggests
Strong operational efficiency at 27.0%
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Moderate valuation
Distress zone — elevated risk
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 : QSR
The strongest argument for QSR centers on EPS Growth, Return on Equity, PEG Ratio. PEG of 0.94 suggests the stock is reasonably priced for its growth.
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 : QSR
The primary concerns for QSR are P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
QSR is growing revenue faster at 7.3% — sustainability is the question.
QSR generates stronger free cash flow (169M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
QSR scores higher overall (70/100 vs 52/100). 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 →Restaurant Brands International Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Restaurant Brands International Inc. owns, operates and franchises quick-service restaurants under the Tim Hortons (TH), Burger King (BK) and Popeyes (PLK) brands. The company is headquartered in Toronto, Canada.
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