CarMax Inc (KMX)vsSonic Automotive Inc (SAH)
KMX
CarMax Inc
$41.88
-0.52%
CONSUMER CYCLICAL · Cap: $6.18B
SAH
Sonic Automotive Inc
$65.31
+1.59%
CONSUMER CYCLICAL · Cap: $2.19B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 84% more annual revenue ($27.83B vs $15.15B). SAH leads profitability with a 78.0% profit margin vs 1.6%. SAH appears more attractively valued with a PEG of 0.31. KMX earns a higher WallStSmart Score of 54/100 (C-).
KMX
Buy54
out of 100
Grade: C-
SAH
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-120.8%
Fair Value
$20.74
Current Price
$41.88
$21.14 premium
Margin of Safety
-161.6%
Fair Value
$23.26
Current Price
$65.31
$42.05 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Generating 1.1B in free cash flow
Growing faster than its price suggests
Keeps 78 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Distress zone — elevated risk
ROE of 7.5% — below average capital efficiency
1.6% margin — thin
Operating margin of 1.8%
Operating margin of 3.3%
Weak financial health signals
Revenue declined 60.0%
Earnings declined 18.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : KMX
The strongest argument for KMX centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.
Bull Case : SAH
The strongest argument for SAH centers on PEG Ratio, Profit Margin, Price/Book. Profitability is solid with margins at 78.0% and operating margin at 3.3%. PEG of 0.31 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 1.6% margins leave little buffer for downturns.
Bear Case : SAH
The primary concerns for SAH are Operating Margin, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
KMX profiles as a value stock while SAH is a declining play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.33 — expect wider price swings.
KMX is growing revenue faster at -6.7% — sustainability is the question.
KMX generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
KMX scores higher overall (54/100 vs 53/100). Both earn "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 →Sonic Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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