Carvana Co (CVNA)vsLithia Motors Inc (LAD)
CVNA
Carvana Co
$65.11
-1.11%
CONSUMER CYCLICAL · Cap: $77.90B
LAD
Lithia Motors Inc
$316.27
-1.68%
CONSUMER CYCLICAL · Cap: $8.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 51% more annual revenue ($37.94B vs $25.06B). CVNA leads profitability with a 6.3% profit margin vs 1.9%. LAD trades at a lower P/E of 12.2x. LAD earns a higher WallStSmart Score of 61/100 (C+).
CVNA
Buy60
out of 100
Grade: C+
LAD
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-41.5%
Fair Value
$46.52
Current Price
$65.11
$18.59 premium
Margin of Safety
+11.9%
Fair Value
$363.82
Current Price
$316.27
$47.55 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 39 in profit
Revenue surging 52.4% year-over-year
Earnings expanding 61.5% YoY
Large-cap with strong market position
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
Premium valuation, high expectations priced in
Trading at 11.6x book value
6.3% margin — thin
Elevated debt levels
2.2% revenue growth
1.9% margin — thin
Operating margin of 4.6%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 52.4% demonstrates continued momentum.
Bull Case : LAD
The strongest argument for LAD centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.72 suggests the stock is reasonably priced for its growth.
Bear Case : CVNA
The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 2.58 is elevated, increasing financial risk. 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 3.50 — expect wider price swings.
CVNA is growing revenue faster at 52.4% — sustainability is the question.
CVNA generates stronger free cash flow (187M), providing more financial flexibility.
Bottom Line
LAD scores higher overall (61/100 vs 60/100). 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.
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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