Carvana Co (CVNA)vsLithia Motors Inc (LAD)
CVNA
Carvana Co
$72.00
+5.43%
CONSUMER CYCLICAL · Cap: $75.70B
LAD
Lithia Motors Inc
$309.66
+3.32%
CONSUMER CYCLICAL · Cap: $6.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 39% more annual revenue ($38.21B vs $27.45B). CVNA leads profitability with a 6.2% profit margin vs 2.1%. LAD trades at a lower P/E of 8.3x. LAD earns a higher WallStSmart Score of 68/100 (B-).
CVNA
Buy60
out of 100
Grade: C+
LAD
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-32.8%
Fair Value
$51.41
Current Price
$72.00
$20.59 premium
Margin of Safety
+12.2%
Fair Value
$364.90
Current Price
$309.66
$55.24 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 39 in profit
Revenue surging 42.4% year-over-year
Earnings expanding 85.7% YoY
Large-cap with strong market position
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 53.5% YoY
Growing faster than its price suggests
Areas to Watch
Premium valuation, high expectations priced in
Trading at 11.9x book value
6.2% margin — thin
Elevated debt levels
2.8% revenue growth
2.1% margin — thin
Operating margin of 4.2%
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 42.4% demonstrates continued momentum.
Bull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, EPS Growth. PEG of 0.58 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 2.43 is elevated, increasing financial risk. Thin 2.1% 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 42.4% — sustainability is the question.
CVNA generates stronger free cash flow (187M), providing more financial flexibility.
Bottom Line
LAD scores higher overall (68/100 vs 60/100). Both earn "Strong 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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