AutoNation Inc (AN)vsLithia Motors Inc (LAD)
AN
AutoNation Inc
$202.28
-0.19%
CONSUMER CYCLICAL · Cap: $7.21B
LAD
Lithia Motors Inc
$286.38
+1.54%
CONSUMER CYCLICAL · Cap: $6.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 37% more annual revenue ($37.73B vs $27.63B). AN leads profitability with a 2.4% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. LAD earns a higher WallStSmart Score of 55/100 (C).
AN
Buy55
out of 100
Grade: C
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+13.1%
Fair Value
$239.19
Current Price
$202.28
$36.91 discount
Margin of Safety
+53.9%
Fair Value
$694.85
Current Price
$286.38
$408.48 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
1.3% earnings growth
2.4% margin — thin
Operating margin of 4.0%
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 : AN
The strongest argument for AN centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 0.78 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 0.64 suggests the stock is reasonably priced for its growth.
Bear Case : AN
The primary concerns for AN are EPS Growth, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.22 — expect wider price swings.
LAD is growing revenue faster at 1.0% — sustainability is the question.
AN generates stronger free cash flow (-34M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
AN scores higher overall (55/100 vs 55/100). LAD offers better value entry with a 53.9% margin of safety. 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.
AutoNation Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.
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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