WallStSmart

AutoNation Inc (AN)vsLithia Motors Inc (LAD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lithia Motors Inc generates 38% more annual revenue ($37.94B vs $27.45B). AN leads profitability with a 2.8% profit margin vs 1.9%. AN appears more attractively valued with a PEG of 0.78. AN earns a higher WallStSmart Score of 63/100 (C+).

AN

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 7.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.83

LAD

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 5.0Value: 7.3Quality: 4.0
Piotroski: 2/9Altman Z: 2.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AN.

LADUndervalued (+12.2%)

Margin of Safety

+12.2%

Fair Value

$364.72

Current Price

$370.99

$6.27 discount

UndervaluedFair: $364.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN4 strengths · Avg: 9.5/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.5%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
138.4%10/10

Earnings expanding 138.4% YoY

PEG RatioValuation
0.788/10

Growing faster than its price suggests

LAD3 strengths · Avg: 8.7/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.808/10

Growing faster than its price suggests

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

Areas to Watch

AN4 concerns · Avg: 2.8/10
Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Return on Equity, EPS Growth. PEG of 0.78 suggests the stock is reasonably priced for its growth.

Bull Case : LAD

The strongest argument for LAD centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.80 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. Debt-to-equity of 4.71 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 2.53 is elevated, increasing financial risk. Thin 1.9% 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 2.2% — 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 (63/100 vs 61/100). 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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