AutoNation Inc (AN)vsLithia Motors Inc (LAD)
AN
AutoNation Inc
$181.46
-1.77%
CONSUMER CYCLICAL · Cap: $6.30B
LAD
Lithia Motors Inc
$243.00
-2.14%
CONSUMER CYCLICAL · Cap: $5.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 36% more annual revenue ($37.63B vs $27.63B). AN leads profitability with a 2.4% profit margin vs 2.2%. LAD appears more attractively valued with a PEG of 0.44. LAD earns a higher WallStSmart Score of 58/100 (C).
AN
Buy58
out of 100
Grade: C
LAD
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-37.3%
Fair Value
$151.32
Current Price
$181.46
$30.14 premium
Margin of Safety
-45.8%
Fair Value
$219.78
Current Price
$243.00
$23.22 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Earnings expanding 130.0% YoY
Safe zone — low bankruptcy risk
Every $100 of equity generates 27 in profit
Growing faster than its price suggests
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 30.0% year-over-year
Areas to Watch
2.4% margin — thin
Operating margin of 4.0%
Weak financial health signals
Revenue declined 3.9%
2.2% margin — thin
Operating margin of 3.9%
Weak financial health signals
Earnings declined 28.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : AN
The strongest argument for AN centers on P/E Ratio, EPS Growth, Altman Z-Score. PEG of 0.68 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. Revenue growth of 30.0% demonstrates continued momentum. PEG of 0.44 suggests the stock is reasonably priced for its growth.
Bear Case : AN
The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.4% margins leave little buffer for downturns.
Bear Case : LAD
The primary concerns for LAD are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
AN profiles as a value stock while LAD is a growth play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.20 — expect wider price swings.
LAD is growing revenue faster at 30.0% — sustainability is the question.
LAD generates stronger free cash flow (66M), providing more financial flexibility.
Bottom Line
AN scores higher overall (58/100 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.
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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