WallStSmart

CarMax Inc (KMX)vsRush Enterprises B Inc (RUSHB)

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Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 307% more annual revenue ($29.46B vs $7.24B). RUSHB leads profitability with a 3.7% profit margin vs 1.0%. KMX appears more attractively valued with a PEG of 0.68. KMX earns a higher WallStSmart Score of 65/100 (B-).

KMX

Strong Buy

65

out of 100

Grade: B-

Growth: 6.7Profit: 4.0Value: 6.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.66

RUSHB

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 5.0Value: 4.0Quality: 6.0
Piotroski: 3/9Altman Z: 3.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for KMX.

RUSHBFair Value (-3.7%)

Margin of Safety

-3.7%

Fair Value

$63.04

Current Price

$59.14

$3.90 premium

UndervaluedFair: $63.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMX4 strengths · Avg: 9.0/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

EPS GrowthGrowth
81.6%10/10

Earnings expanding 81.6% YoY

PEG RatioValuation
0.688/10

Growing faster than its price suggests

Revenue GrowthGrowth
17.7%8/10

17.7% revenue growth

RUSHB2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
3.3410/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Areas to Watch

KMX4 concerns · Avg: 3.5/10
P/E RatioValuation
25.5x4/10

Moderate valuation

Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Profit MarginProfitability
1.0%3/10

1.0% margin — thin

RUSHB4 concerns · Avg: 2.8/10
Profit MarginProfitability
3.7%3/10

3.7% margin — thin

Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.742/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : KMX

The strongest argument for KMX centers on Price/Book, EPS Growth, PEG Ratio. Revenue growth of 17.7% demonstrates continued momentum. PEG of 0.68 suggests the stock is reasonably priced for its growth.

Bull Case : RUSHB

The strongest argument for RUSHB centers on Altman Z-Score, Price/Book. Revenue growth of 12.4% demonstrates continued momentum.

Bear Case : KMX

The primary concerns for KMX are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 2.83 is elevated, increasing financial risk. Thin 1.0% margins leave little buffer for downturns.

Bear Case : RUSHB

The primary concerns for RUSHB are Profit Margin, Operating Margin, Piotroski F-Score. Thin 3.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

KMX profiles as a growth stock while RUSHB is a value play — different risk/reward profiles.

KMX carries more volatility with a beta of 1.23 — expect wider price swings.

KMX is growing revenue faster at 17.7% — sustainability is the question.

KMX generates stronger free cash flow (806M), providing more financial flexibility.

Bottom Line

KMX scores higher overall (65/100 vs 54/100) and 17.7% revenue growth. 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.

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Rush Enterprises B 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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