AutoNation Inc (AN)vsLithia Motors Inc (LAD)
AN
AutoNation Inc
$185.82
+3.48%
CONSUMER CYCLICAL · Cap: $5.43B
LAD
Lithia Motors Inc
$309.66
+3.32%
CONSUMER CYCLICAL · Cap: $6.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 39% more annual revenue ($38.21B vs $27.45B). AN leads profitability with a 2.8% profit margin vs 2.1%. AN appears more attractively valued with a PEG of 0.46. LAD earns a higher WallStSmart Score of 68/100 (B-).
AN
Strong Buy66
out of 100
Grade: B-
LAD
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AN.
Margin of Safety
+12.2%
Fair Value
$364.90
Current Price
$309.66
$55.24 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 138.5% YoY
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
2.8% margin — thin
Operating margin of 4.5%
Revenue declined 0.6%
Negative free cash flow — burning cash
2.8% revenue growth
2.1% margin — thin
Operating margin of 4.2%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : AN
The strongest argument for AN centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.46 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 : AN
The primary concerns for AN are Profit Margin, Operating Margin, Revenue Growth. Debt-to-equity of 5.02 is elevated, increasing financial risk. Thin 2.8% 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.
LAD generates stronger free cash flow (-130M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (68/100 vs 66/100). Both earn "Strong Buy" and "Strong 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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