CarMax Inc (KMX)vsUnion Pacific Corporation (UNP)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
UNP
Union Pacific Corporation
$264.65
-0.09%
INDUSTRIALS · Cap: $157.27B
Smart Verdict
WallStSmart Research — data-driven comparison
CarMax Inc generates 12% more annual revenue ($27.76B vs $24.70B). UNP leads profitability with a 29.2% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. UNP earns a higher WallStSmart Score of 60/100 (C).
KMX
Buy52
out of 100
Grade: C-
UNP
Buy60
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
-75.9%
Fair Value
$150.49
Current Price
$264.65
$114.16 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 41 in profit
Strong operational efficiency at 40.4%
Large-cap with strong market position
Keeps 29 of every $100 in revenue as profit
Generating 1.5B 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%
Trading at 8.5x book value
3.2% revenue growth
Expensive relative to growth rate
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 : UNP
The strongest argument for UNP centers on Return on Equity, Operating Margin, Market Cap. Profitability is solid with margins at 29.2% and operating margin at 40.4%.
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 : UNP
The primary concerns for UNP are Price/Book, Revenue Growth, PEG Ratio.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
UNP is growing revenue faster at 3.2% — sustainability is the question.
UNP generates stronger free cash flow (1.5B), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
UNP scores higher overall (60/100 vs 52/100), backed by strong 29.2% 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 →Union Pacific Corporation
INDUSTRIALS · RAILROADS · USA
The Union Pacific Corporation (Union Pacific) is a publicly traded railroad holding company. It was incorporated in Utah in 1969 and is headquartered in Omaha, Nebraska. It is the parent company of the current, Delaware-registered, form of the Union Pacific Railroad.
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