Asbury Automotive Group Inc (ABG)vsLithia Motors Inc (LAD)
ABG
Asbury Automotive Group Inc
$202.65
-2.12%
CONSUMER CYCLICAL · Cap: $3.58B
LAD
Lithia Motors Inc
$308.77
-2.45%
CONSUMER CYCLICAL · Cap: $6.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 117% more annual revenue ($38.21B vs $17.59B). ABG leads profitability with a 2.7% profit margin vs 2.1%. ABG appears more attractively valued with a PEG of 0.49. LAD earns a higher WallStSmart Score of 68/100 (B-).
ABG
Buy56
out of 100
Grade: C
LAD
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-55.8%
Fair Value
$149.06
Current Price
$202.65
$53.59 premium
Margin of Safety
+12.2%
Fair Value
$364.90
Current Price
$308.77
$56.13 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 53.5% YoY
Growing faster than its price suggests
Areas to Watch
2.7% margin — thin
Operating margin of 4.7%
Elevated debt levels
Weak financial health signals
2.8% revenue growth
2.1% margin — thin
Operating margin of 4.2%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ABG
The strongest argument for ABG centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.49 suggests the stock is reasonably priced for its growth.
Bull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, EPS Growth. PEG of 0.58 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 2.7% 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 2.43 is elevated, increasing financial risk. Thin 2.1% 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 2.8% — sustainability is the question.
ABG generates stronger free cash flow (9M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (68/100 vs 56/100). 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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