CarMax Inc (KMX)vsTrade Desk Inc (TTD)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
TTD
Trade Desk Inc
$23.08
-1.75%
COMMUNICATION SERVICES · Cap: $11.18B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 858% more annual revenue ($27.76B vs $2.90B). TTD leads profitability with a 15.3% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. TTD earns a higher WallStSmart Score of 72/100 (B).
KMX
Buy52
out of 100
Grade: C-
TTD
Strong Buy72
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+83.0%
Fair Value
$270.07
Current Price
$40.34
$229.73 discount
Intrinsic value data unavailable for TTD.
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 30.3%
Growing faster than its price suggests
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
Grey zone — moderate risk
Weak financial health signals
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 : TTD
The strongest argument for TTD centers on Operating Margin, PEG Ratio. Profitability is solid with margins at 15.3% and operating margin at 30.3%. Revenue growth of 14.3% 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 : TTD
The primary concerns for TTD are P/E Ratio, Altman Z-Score, Piotroski F-Score.
Key Dynamics to Monitor
KMX profiles as a value stock while TTD is a mature play — different risk/reward profiles.
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
TTD is growing revenue faster at 14.3% — sustainability is the question.
TTD generates stronger free cash flow (279M), providing more financial flexibility.
Bottom Line
TTD scores higher overall (72/100 vs 52/100), backed by strong 15.3% margins and 14.3% 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.
Visit Website →Trade Desk Inc
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
Trade Desk, Inc. is a technology company in the United States and internationally. The company is headquartered in Ventura, California.
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