ACV Auctions Inc. (ACVA)vsLithia Motors Inc (LAD)
ACVA
ACV Auctions Inc.
$5.66
-3.58%
CONSUMER CYCLICAL · Cap: $1.15B
LAD
Lithia Motors Inc
$288.84
-0.61%
CONSUMER CYCLICAL · Cap: $7.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 4730% more annual revenue ($37.73B vs $781.10M). LAD leads profitability with a 1.9% profit margin vs -8.0%. LAD earns a higher WallStSmart Score of 55/100 (C).
ACVA
Hold37
out of 100
Grade: F
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+57.9%
Fair Value
$17.12
Current Price
$5.66
$11.46 discount
Margin of Safety
+8.7%
Fair Value
$350.78
Current Price
$288.84
$61.94 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -14.4% — below average capital efficiency
Distress zone — elevated risk
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ACVA
The strongest argument for ACVA centers on Price/Book. Revenue growth of 11.8% demonstrates continued momentum.
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 : ACVA
The primary concerns for ACVA are EPS Growth, Market Cap, Return on Equity.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 1.51 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
ACVA profiles as a turnaround stock while LAD is a value play — different risk/reward profiles.
ACVA carries more volatility with a beta of 1.78 — expect wider price swings.
ACVA is growing revenue faster at 11.8% — sustainability is the question.
ACVA generates stronger free cash flow (75M), providing more financial flexibility.
Bottom Line
LAD scores higher overall (55/100 vs 37/100). ACVA offers better value entry with a 57.9% margin of safety. 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.
ACV Auctions Inc.
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
ACV Auctions, Inc., operates a digital marketplace that connects buyers and sellers for online wholesale vehicle auctions. The company is headquartered in Buffalo, New York.
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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