WallStSmart

CarMax Inc (KMX)vsAT&T Inc. 5.35% GLB NTS 66 (TBB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

KMX leads profitability with a 0.9% profit margin vs 0.0%. TBB trades at a lower P/E of 4.2x. KMX earns a higher WallStSmart Score of 52/100 (C-).

KMX

Buy

52

out of 100

Grade: C-

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

TBB

Avoid

25

out of 100

Grade: F

Growth: 4.0Profit: 4.5Value: 6.7Quality: 3.5
Piotroski: 5/9Altman Z: 0.87
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 TBB.

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

TBB3 strengths · Avg: 9.0/10
P/E RatioValuation
4.2x10/10

Attractively priced relative to earnings

Market CapQuality
$132.56B9/10

Large-cap with strong market position

Free Cash FlowQuality
$2.68B8/10

Generating 2.7B 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%

TBB4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

Operating MarginProfitability
0.0%3/10

Operating margin of 0.0%

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 : TBB

The strongest argument for TBB centers on P/E Ratio, Market Cap, Free Cash Flow.

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 : TBB

The primary concerns for TBB are Revenue Growth, EPS Growth, Profit Margin. Debt-to-equity of 1.57 is elevated, increasing financial risk.

Key Dynamics to Monitor

TBB is growing revenue faster at 0.0% — sustainability is the question.

TBB generates stronger free cash flow (2.7B), providing more financial flexibility.

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

Bottom Line

KMX scores higher overall (52/100 vs 25/100). Both earn "Buy" and "Avoid" 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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AT&T Inc. 5.35% GLB NTS 66

· · USA

AT&T Inc. provides digital entertainment communications and services. The company is headquartered in Dallas, Texas.

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