CarMax Inc (KMX)vsWalmart Inc. (WMT)
KMX
CarMax Inc
$40.34
+1.08%
CONSUMER CYCLICAL · Cap: $5.66B
WMT
Walmart Inc.
$130.43
+0.18%
CONSUMER DEFENSIVE · Cap: $1.04T
Smart Verdict
WallStSmart Research — data-driven comparison
Walmart Inc. generates 2469% more annual revenue ($713.16B vs $27.76B). WMT leads profitability with a 3.1% profit margin vs 0.9%. KMX appears more attractively valued with a PEG of 0.38. KMX earns a higher WallStSmart Score of 52/100 (C-).
KMX
Buy52
out of 100
Grade: C-
WMT
Hold43
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
-89.4%
Fair Value
$68.88
Current Price
$130.43
$61.55 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Mega-cap, among the largest globally
Safe zone — low bankruptcy risk
Every $100 of equity generates 22 in profit
Generating 6.1B 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%
Trading at 10.4x book value
3.1% margin — thin
Operating margin of 4.6%
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 : WMT
The strongest argument for WMT centers on Market Cap, Altman Z-Score, Return on Equity.
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 : WMT
The primary concerns for WMT are Price/Book, Profit Margin, Operating Margin. A P/E of 47.7x leaves little room for execution misses. Thin 3.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
KMX carries more volatility with a beta of 1.18 — expect wider price swings.
WMT is growing revenue faster at 5.6% — sustainability is the question.
WMT generates stronger free cash flow (6.1B), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KMX scores higher overall (52/100 vs 43/100). 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 →Walmart Inc.
CONSUMER DEFENSIVE · DISCOUNT STORES · USA
Walmart Inc. is an American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores from the United States, headquartered in Bentonville, Arkansas. It also owns and operates Sam's Club retail warehouses.
Visit Website →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
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