CarMax Inc (KMX)vsTalen Energy Corporation (TLN)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
TLN
Talen Energy Corporation
$386.37
-1.07%
UTILITIES · Cap: $17.85B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 725% more annual revenue ($27.76B vs $3.37B). KMX leads profitability with a 0.9% profit margin vs -0.6%. KMX earns a higher WallStSmart Score of 52/100 (C-).
KMX
Buy52
out of 100
Grade: C-
TLN
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$40.34
$229.73 discount
Margin of Safety
-76.5%
Fair Value
$200.88
Current Price
$386.37
$185.49 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Revenue surging 78.9% year-over-year
Earnings expanding 34.5% YoY
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Trading at 16.2x book value
ROE of -1.9% — below average capital efficiency
Distress zone — elevated risk
Currently unprofitable
Comparative Analysis Report
WallStSmart ResearchBull 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 : TLN
The strongest argument for TLN centers on Revenue Growth, EPS Growth. Revenue growth of 78.9% 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 : TLN
The primary concerns for TLN are Price/Book, Return on Equity, Altman Z-Score.
Key Dynamics to Monitor
KMX profiles as a value stock while TLN is a hypergrowth play — different risk/reward profiles.
TLN carries more volatility with a beta of 1.67 — expect wider price swings.
TLN is growing revenue faster at 78.9% — sustainability is the question.
TLN generates stronger free cash flow (461M), providing more financial flexibility.
Bottom Line
KMX scores higher overall (52/100 vs 48/100). 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.
Visit Website →Talen Energy Corporation
UTILITIES · UTILITIES - INDEPENDENT POWER PRODUCERS · USA
Talen Energy Corporation (Ticker: TLN) is a leading power generation and infrastructure company based in the United States, specializing in the development and operation of reliable and sustainable energy solutions. With a diverse portfolio that includes both traditional and renewable energy sources, Talen Energy is committed to supporting the evolving energy landscape while prioritizing environmental stewardship. The company is strategically positioned to meet growing electricity demand, leverage technological advancements, and enhance grid resilience, making it an attractive investment opportunity for institutional investors focused on the energy sector's transformation.
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