Asbury Automotive Group Inc (ABG)vsLithia Motors Inc (LAD)
ABG
Asbury Automotive Group Inc
$190.98
+0.44%
CONSUMER CYCLICAL · Cap: $3.72B
LAD
Lithia Motors Inc
$288.84
-0.61%
CONSUMER CYCLICAL · Cap: $7.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 110% more annual revenue ($37.73B vs $17.96B). ABG leads profitability with a 3.0% profit margin vs 1.9%. ABG appears more attractively valued with a PEG of 0.57. ABG earns a higher WallStSmart Score of 66/100 (B-).
ABG
Strong Buy66
out of 100
Grade: B-
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-59.3%
Fair Value
$145.86
Current Price
$190.98
$45.12 premium
Margin of Safety
+8.5%
Fair Value
$350.34
Current Price
$288.84
$61.50 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Earnings expanding 47.1% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
3.0% margin — thin
Operating margin of 4.7%
Elevated debt levels
Weak financial health signals
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ABG
The strongest argument for ABG centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.57 suggests the stock is reasonably priced for its growth.
Bull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.70 suggests the stock is reasonably priced for its growth.
Bear Case : ABG
The primary concerns for ABG are Profit Margin, Operating Margin, Debt/Equity. Thin 3.0% margins leave little buffer for downturns.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 2.53 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.26 — expect wider price swings.
LAD is growing revenue faster at 1.0% — sustainability is the question.
ABG generates stronger free cash flow (174M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ABG scores higher overall (66/100 vs 55/100). 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.
Asbury Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Asbury Automotive Group, Inc. is an automobile retailer in the United States. The company is headquartered in Duluth, Georgia.
Lithia Motors Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Lithia Motors, Inc. is an automobile retailer in the United States. The company is headquartered in Medford, Oregon.
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