WallStSmart

Asbury Automotive Group Inc (ABG)vsLithia Motors Inc (LAD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Lithia Motors Inc generates 109% more annual revenue ($37.63B vs $18.00B). ABG leads profitability with a 2.7% profit margin vs 2.2%. LAD appears more attractively valued with a PEG of 0.44. ABG earns a higher WallStSmart Score of 59/100 (C).

ABG

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 5.5Value: 7.3Quality: 5.3
Piotroski: 3/9

LAD

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 7.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABGSignificantly Overvalued (-36.0%)

Margin of Safety

-36.0%

Fair Value

$170.82

Current Price

$194.08

$23.26 premium

UndervaluedFair: $170.82Overvalued
LADSignificantly Overvalued (-45.8%)

Margin of Safety

-45.8%

Fair Value

$219.84

Current Price

$254.20

$34.36 premium

UndervaluedFair: $219.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABG3 strengths · Avg: 9.3/10
P/E RatioValuation
7.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.538/10

Growing faster than its price suggests

LAD3 strengths · Avg: 10.0/10
PEG RatioValuation
0.4410/10

Growing faster than its price suggests

P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Areas to Watch

ABG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
3.8%4/10

3.8% revenue growth

Profit MarginProfitability
2.7%3/10

2.7% margin — thin

Debt/EquityHealth
1.443/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Profit MarginProfitability
2.2%3/10

2.2% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ABG

The strongest argument for ABG centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.53 suggests the stock is reasonably priced for its growth.

Bull Case : LAD

The strongest argument for LAD centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.44 suggests the stock is reasonably priced for its growth.

Bear Case : ABG

The primary concerns for ABG are Revenue Growth, Profit 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. Thin 2.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

LAD carries more volatility with a beta of 1.20 — expect wider price swings.

ABG is growing revenue faster at 3.8% — sustainability is the question.

LAD generates stronger free cash flow (66M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ABG scores higher overall (59/100 vs 58/100). 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.

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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