Dow v CarMax – Why does Dow have an edge in potential gains in 2022?

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Dow Inc

Dow Inc. (NYSE:DOW) is a leading provider of materials science solutions for packaging, infrastructure, and consumer applications in North America with operations across Europe to the Middle East Africa region as well India Pacific coastlines serving Asia Pacific markets including Latin American clientele.

It offers more than 100 diverse product lines that include plastic bottles or containers made from Styrofoam insulation, film, coating products, architectural paints, and coatings, among others. It is also involved in property and casualty insurance, as well as the reinsurance business.

CarMax Inc

CarMax, Inc. (NYSE:KMX) operates as a retailer of used vehicles in the United States through its subsidiaries: CarMax Sales Operations and Auto Finance Group (AFG). It offers customers a range of options for their purchase with domestic cars available on-site alongside imported or luxury make/models; extended protection plans that provide coverage beyond what’s included under manufacturer warranty requirements.

Additionally, they sell up to 10-year-old models having over 100K. Additional services include reconditioning and offering vehicle repair services as well as financing alternatives for retail customers.

Which one is a better buy?

While both are good stocks to buy in 2022, Dow has better prospects. That’s because packaging materials are growing in demand due to the explosion of e-commerce. With the pandemic accelerating a more home-based lifestyle, e-commerce is only likely to get bigger, and this means even better revenues for companies like Dow.

Being in a high-growth market also makes Dow a stable company regardless of the prevailing conditions in the equity markets. With interest rates set to go up, Dow comes across as a value buy compared to CarMax.

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