WallStSmart

CarMax Inc (KMX)vsS&P Global Inc (SPGI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

CarMax Inc generates 76% more annual revenue ($27.76B vs $15.73B). SPGI leads profitability with a 30.4% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. SPGI earns a higher WallStSmart Score of 71/100 (B).

KMX

Buy

52

out of 100

Grade: C-

Growth: 2.0Profit: 4.0Value: 8.7Quality: 4.5
Piotroski: 3/9Altman Z: 1.53

SPGI

Strong Buy

71

out of 100

Grade: B

Growth: 8.0Profit: 8.0Value: 5.7Quality: 5.5
Piotroski: 5/9Altman Z: 1.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KMXUndervalued (+83.0%)

Margin of Safety

+83.0%

Fair Value

$270.07

Current Price

$40.34

$229.73 discount

UndervaluedFair: $270.07Overvalued

Intrinsic value data unavailable for SPGI.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

KMX2 strengths · Avg: 10.0/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

SPGI5 strengths · Avg: 9.0/10
Profit MarginProfitability
30.4%10/10

Keeps 30 of every $100 in revenue as profit

Operating MarginProfitability
44.3%10/10

Strong operational efficiency at 44.3%

Market CapQuality
$126.89B9/10

Large-cap with strong market position

EPS GrowthGrowth
32.5%8/10

Earnings expanding 32.5% YoY

Free Cash FlowQuality
$1.01B8/10

Generating 1.0B in free cash flow

Areas to Watch

KMX4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Return on EquityProfitability
4.1%3/10

ROE of 4.1% — below average capital efficiency

Profit MarginProfitability
0.9%3/10

0.9% margin — thin

Operating MarginProfitability
1.8%3/10

Operating margin of 1.8%

SPGI2 concerns · Avg: 4.0/10
P/E RatioValuation
27.1x4/10

Moderate valuation

Altman Z-ScoreHealth
1.974/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : SPGI

The strongest argument for SPGI centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 30.4% and operating margin at 44.3%. Revenue growth of 10.4% 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 : SPGI

The primary concerns for SPGI are P/E Ratio, Altman Z-Score.

Key Dynamics to Monitor

KMX profiles as a value stock while SPGI is a mature play — different risk/reward profiles.

KMX carries more volatility with a beta of 1.18 — expect wider price swings.

SPGI is growing revenue faster at 10.4% — sustainability is the question.

SPGI generates stronger free cash flow (1.0B), providing more financial flexibility.

Bottom Line

SPGI scores higher overall (71/100 vs 52/100), backed by strong 30.4% margins and 10.4% 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.

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S&P Global Inc

FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA

S&P Global Inc. is an American publicly traded corporation headquartered in Manhattan, New York City. Its primary areas of business are financial information and analytics.

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