CarMax Inc (KMX)vsRush Enterprises A Inc (RUSHA)
KMX
CarMax Inc
$37.25
+1.00%
CONSUMER CYCLICAL · Cap: $5.46B
RUSHA
Rush Enterprises A Inc
$71.03
-2.69%
CONSUMER CYCLICAL · Cap: $5.66B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 282% more annual revenue ($27.76B vs $7.27B). RUSHA leads profitability with a 3.6% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.40. KMX earns a higher WallStSmart Score of 52/100 (C-).
KMX
Buy52
out of 100
Grade: C-
RUSHA
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$37.25
$232.82 discount
Margin of Safety
+55.8%
Fair Value
$164.81
Current Price
$71.03
$93.78 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
3.6% margin — thin
Operating margin of 4.9%
Expensive relative to growth rate
Revenue declined 9.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : KMX
The strongest argument for KMX centers on PEG Ratio, Price/Book. PEG of 0.40 suggests the stock is reasonably priced for its growth.
Bull Case : RUSHA
The strongest argument for RUSHA centers on Altman Z-Score, 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 0.9% margins leave little buffer for downturns.
Bear Case : RUSHA
The primary concerns for RUSHA are Profit Margin, Operating Margin, PEG Ratio. Thin 3.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.30 — expect wider price swings.
KMX is growing revenue faster at -1.2% — sustainability is the question.
RUSHA generates stronger free cash flow (-218M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KMX scores higher overall (52/100 vs 47/100). RUSHA offers better value entry with a 55.8% margin of safety. 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 →Rush Enterprises A Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Rush Enterprises, Inc. is an integrated retailer of commercial vehicles and related services in the United States. The company is headquartered in New Braunfels, Texas.
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