CarGurus (CARG)vsLithia Motors Inc (LAD)
CARG
CarGurus
$27.42
+0.18%
CONSUMER CYCLICAL · Cap: $2.45B
LAD
Lithia Motors Inc
$288.84
-0.61%
CONSUMER CYCLICAL · Cap: $7.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 3921% more annual revenue ($37.73B vs $938.30M). CARG leads profitability with a 15.9% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.70. CARG earns a higher WallStSmart Score of 65/100 (C+).
CARG
Buy65
out of 100
Grade: C+
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+22.6%
Fair Value
$35.55
Current Price
$27.42
$8.13 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
Every $100 of equity generates 63 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 24.5%
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Trading at 10.4x book value
Earnings declined 8.4%
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : CARG
The strongest argument for CARG centers on Return on Equity, Altman Z-Score, PEG Ratio. Profitability is solid with margins at 15.9% and operating margin at 24.5%. Revenue growth of 14.8% 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 : CARG
The primary concerns for CARG are Price/Book, EPS Growth.
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
CARG profiles as a mature stock while LAD is a value play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.26 — expect wider price swings.
CARG is growing revenue faster at 14.8% — sustainability is the question.
CARG generates stronger free cash flow (69M), providing more financial flexibility.
Bottom Line
CARG scores higher overall (65/100 vs 55/100), backed by strong 15.9% margins and 14.8% revenue growth. 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.
CarGurus
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
CarGurus, Inc. operates an online automotive marketplace that connects buyers and sellers of new and used cars in the United States and internationally. The company is headquartered in Cambridge, Massachusetts.
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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