Carvana Co (CVNA)vsLithia Motors Inc (LAD)
CVNA
Carvana Co
$281.28
-4.39%
CONSUMER CYCLICAL · Cap: $61.64B
LAD
Lithia Motors Inc
$243.00
-2.14%
CONSUMER CYCLICAL · Cap: $5.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 85% more annual revenue ($37.63B vs $20.32B). CVNA leads profitability with a 6.9% profit margin vs 2.2%. LAD trades at a lower P/E of 7.5x. CVNA earns a higher WallStSmart Score of 60/100 (C+).
CVNA
Buy60
out of 100
Grade: C+
LAD
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+7.8%
Fair Value
$394.99
Current Price
$281.28
$113.71 discount
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
Every $100 of equity generates 68 in profit
Revenue surging 58.0% year-over-year
Earnings expanding 947.0% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
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
Premium valuation, high expectations priced in
Trading at 11.6x book value
6.9% margin — thin
2.2% margin — thin
Operating margin of 3.9%
Weak financial health signals
Earnings declined 28.4%
Comparative Analysis Report
WallStSmart ResearchBull Case : CVNA
The strongest argument for CVNA centers on Return on Equity, Revenue Growth, EPS Growth. Revenue growth of 58.0% demonstrates continued momentum.
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 : CVNA
The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.
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
CVNA profiles as a hypergrowth stock while LAD is a growth play — different risk/reward profiles.
CVNA carries more volatility with a beta of 3.67 — expect wider price swings.
CVNA is growing revenue faster at 58.0% — sustainability is the question.
CVNA generates stronger free cash flow (379M), providing more financial flexibility.
Bottom Line
CVNA scores higher overall (60/100 vs 58/100) and 58.0% 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.
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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