CarMax Inc (KMX)vsResMed Inc (RMD)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
RMD
ResMed Inc
$206.76
-0.06%
HEALTHCARE · Cap: $30.01B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 401% more annual revenue ($27.76B vs $5.54B). RMD leads profitability with a 27.4% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. RMD earns a higher WallStSmart Score of 73/100 (B).
KMX
Buy52
out of 100
Grade: C-
RMD
Strong Buy73
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
-13.1%
Fair Value
$229.58
Current Price
$206.76
$22.82 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 35.3%
Safe zone — low bankruptcy risk
Every $100 of equity generates 25 in profit
Keeps 27 of every $100 in revenue as profit
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
No major concerns identified
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 : RMD
The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.4% and operating margin at 35.3%. Revenue growth of 10.8% 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 : RMD
No major red flags identified for RMD, but monitor valuation.
Key Dynamics to Monitor
KMX profiles as a value stock while RMD is a mature play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
RMD is growing revenue faster at 10.8% — sustainability is the question.
RMD generates stronger free cash flow (520M), providing more financial flexibility.
Bottom Line
RMD scores higher overall (73/100 vs 52/100), backed by strong 27.4% margins and 10.8% revenue growth. 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 →ResMed Inc
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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