Carvana Co (CVNA)vsLithia Motors Inc (LAD)
CVNA
Carvana Co
$376.55
-1.58%
CONSUMER CYCLICAL · Cap: $84.54B
LAD
Lithia Motors Inc
$286.38
+1.54%
CONSUMER CYCLICAL · Cap: $6.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 68% more annual revenue ($37.73B vs $22.52B). CVNA leads profitability with a 6.4% profit margin vs 1.9%. LAD trades at a lower P/E of 10.2x. CVNA earns a higher WallStSmart Score of 56/100 (C).
CVNA
Buy56
out of 100
Grade: C
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-44.4%
Fair Value
$252.13
Current Price
$376.55
$124.42 premium
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
Every $100 of equity generates 60 in profit
Revenue surging 52.0% year-over-year
Large-cap with strong market position
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Trading at 14.5x book value
6.4% margin — thin
Premium valuation, high expectations priced in
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 52.0% demonstrates continued momentum.
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 : CVNA
The primary concerns for CVNA are Price/Book, Profit Margin, P/E Ratio. A P/E of 44.2x leaves little room for execution misses.
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
CVNA profiles as a hypergrowth stock while LAD is a value play — different risk/reward profiles.
CVNA carries more volatility with a beta of 3.55 — expect wider price swings.
CVNA is growing revenue faster at 52.0% — sustainability is the question.
CVNA generates stronger free cash flow (56M), providing more financial flexibility.
Bottom Line
CVNA scores higher overall (56/100 vs 55/100) and 52.0% revenue growth. 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.
Carvana Co
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.
Visit Website →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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