CarMax Inc (KMX)vsTC Energy Corp (TRP)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
TRP
TC Energy Corp
$64.75
-0.54%
ENERGY · Cap: $67.82B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 79% more annual revenue ($27.76B vs $15.48B). TRP leads profitability with a 22.2% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. TRP earns a higher WallStSmart Score of 55/100 (C).
KMX
Buy52
out of 100
Grade: C-
TRP
Buy55
out of 100
Grade: C
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
-33.9%
Fair Value
$45.51
Current Price
$64.75
$19.24 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Strong operational efficiency at 47.5%
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Generating 1.1B in free cash flow
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Moderate valuation
Expensive relative to growth rate
Earnings declined 8.5%
Distress zone — elevated risk
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 : TRP
The strongest argument for TRP centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 22.2% and operating margin at 47.5%.
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 : TRP
The primary concerns for TRP are P/E Ratio, PEG Ratio, EPS Growth. Debt-to-equity of 2.23 is elevated, increasing financial risk.
Key Dynamics to Monitor
KMX profiles as a value stock while TRP is a mature play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
TRP is growing revenue faster at 6.6% — sustainability is the question.
TRP generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
TRP scores higher overall (55/100 vs 52/100), backed by strong 22.2% margins. KMX offers better value entry with a 83.0% margin of safety. 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 →TC Energy Corp
ENERGY · OIL & GAS MIDSTREAM · USA
TC Energy Corporation is an energy infrastructure company in North America. The company is headquartered in Calgary, Canada.
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