CarMax Inc (KMX)vsUbiquiti Networks Inc (UI)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
UI
Ubiquiti Networks Inc
$842.10
-9.13%
TECHNOLOGY · Cap: $56.08B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 834% more annual revenue ($27.76B vs $2.97B). UI leads profitability with a 29.9% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. UI earns a higher WallStSmart Score of 71/100 (B).
KMX
Buy52
out of 100
Grade: C-
UI
Strong Buy71
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
Margin of Safety
-84.1%
Fair Value
$387.42
Current Price
$842.10
$454.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Every $100 of equity generates 136 in profit
Strong operational efficiency at 35.9%
Revenue surging 35.8% year-over-year
Earnings expanding 70.8% YoY
Safe zone — low bankruptcy risk
Large-cap with strong market position
Areas to Watch
Distress zone — elevated risk
ROE of 4.1% — below average capital efficiency
0.9% margin — thin
Operating margin of 1.8%
Premium valuation, high expectations priced in
Trading at 50.2x book value
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 : UI
The strongest argument for UI centers on Return on Equity, Operating Margin, Revenue Growth. Profitability is solid with margins at 29.9% and operating margin at 35.9%. Revenue growth of 35.8% 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 : UI
The primary concerns for UI are P/E Ratio, Price/Book. A P/E of 63.3x leaves little room for execution misses.
Key Dynamics to Monitor
KMX profiles as a value stock while UI is a growth play — different risk/reward profiles.
UI carries more volatility with a beta of 1.47 — expect wider price swings.
UI is growing revenue faster at 35.8% — sustainability is the question.
UI generates stronger free cash flow (162M), providing more financial flexibility.
Bottom Line
UI scores higher overall (71/100 vs 52/100), backed by strong 29.9% margins and 35.8% 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 →Ubiquiti Networks Inc
TECHNOLOGY · COMMUNICATION EQUIPMENT · USA
Ubiquiti Inc. develops network technology for service providers, businesses and consumers. The company is headquartered in New York, New York.
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