WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 290% more annual revenue ($28.20B vs $7.24B). RUSHB leads profitability with a 3.7% profit margin vs 0.8%. KMX appears more attractively valued with a PEG of 0.56. KMX earns a higher WallStSmart Score of 53/100 (C-).

KMX

Buy

53

out of 100

Grade: C-

Growth: 3.3Profit: 4.0Value: 5.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.66

RUSHB

Hold

45

out of 100

Grade: D

Growth: 3.3Profit: 5.5Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 3.34
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for KMX.

RUSHBUndervalued (+23.1%)

Margin of Safety

+23.1%

Fair Value

$85.02

Current Price

$78.47

$6.55 discount

UndervaluedFair: $85.02Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMX2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.568/10

Growing faster than its price suggests

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

Safe zone — low bankruptcy risk

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

KMX4 concerns · Avg: 3.5/10
P/E RatioValuation
35.6x4/10

Premium valuation, high expectations priced in

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
0.8%3/10

0.8% margin — thin

RUSHB4 concerns · Avg: 3.0/10
EPS GrowthGrowth
1.1%4/10

1.1% earnings growth

Profit MarginProfitability
3.7%3/10

3.7% margin — thin

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, PEG Ratio. PEG of 0.56 suggests the stock is reasonably priced for its growth.

Bull Case : RUSHB

The strongest argument for RUSHB centers on Altman Z-Score, Price/Book.

Bear Case : KMX

The primary concerns for KMX are P/E Ratio, Altman Z-Score, Return on Equity. Debt-to-equity of 3.05 is elevated, increasing financial risk. Thin 0.8% margins leave little buffer for downturns.

Bear Case : RUSHB

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

Key Dynamics to Monitor

KMX carries more volatility with a beta of 1.16 — expect wider price swings.

KMX is growing revenue faster at 5.5% — sustainability is the question.

RUSHB generates stronger free cash flow (21M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

KMX scores higher overall (53/100 vs 45/100). RUSHB offers better value entry with a 23.1% 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.

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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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