WallStSmart

General Dynamics Corporation (GD)vsLithia Motors Inc (LAD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

General Dynamics Corporation generates 43% more annual revenue ($53.81B vs $37.73B). GD leads profitability with a 8.1% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. GD earns a higher WallStSmart Score of 60/100 (C+).

GD

Buy

60

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 3.3Quality: 7.0
Piotroski: 6/9Altman Z: 2.95

LAD

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 9.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.55
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GDSignificantly Overvalued (-22.0%)

Margin of Safety

-22.0%

Fair Value

$294.02

Current Price

$346.53

$52.51 premium

UndervaluedFair: $294.02Overvalued
LADUndervalued (+53.9%)

Margin of Safety

+53.9%

Fair Value

$694.31

Current Price

$293.99

$400.32 discount

UndervaluedFair: $694.31Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GD2 strengths · Avg: 8.5/10
Market CapQuality
$93.71B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.95B8/10

Generating 2.0B in free cash flow

LAD3 strengths · Avg: 9.3/10
P/E RatioValuation
10.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.648/10

Growing faster than its price suggests

Areas to Watch

GD1 concerns · Avg: 2.0/10
PEG RatioValuation
2.582/10

Expensive relative to growth rate

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : GD

The strongest argument for GD centers on Market Cap, Free Cash Flow. Revenue growth of 10.3% 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 : GD

The primary concerns for GD are PEG Ratio.

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

LAD carries more volatility with a beta of 1.28 — expect wider price swings.

GD is growing revenue faster at 10.3% — sustainability is the question.

GD generates stronger free cash flow (2.0B), providing more financial flexibility.

Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GD scores higher overall (60/100 vs 55/100) and 10.3% 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.

General Dynamics Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

General Dynamics Corporation (GD) is an American aerospace and defense corporation. It is headquartered in Reston, Fairfax County, Virginia.

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.

Want to dig deeper into these stocks?