Group 1 Automotive Inc (GPI)vsLithia Motors Inc (LAD)
GPI
Group 1 Automotive Inc
$326.86
+2.83%
CONSUMER CYCLICAL · Cap: $4.01B
LAD
Lithia Motors Inc
$254.20
+0.89%
CONSUMER CYCLICAL · Cap: $5.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 67% more annual revenue ($37.63B vs $22.57B). LAD leads profitability with a 2.2% profit margin vs 1.4%. GPI appears more attractively valued with a PEG of 0.33. LAD earns a higher WallStSmart Score of 58/100 (C).
GPI
Buy55
out of 100
Grade: C
LAD
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-97.2%
Fair Value
$170.95
Current Price
$326.86
$155.91 premium
Margin of Safety
-45.8%
Fair Value
$219.84
Current Price
$254.20
$34.36 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
0.6% revenue growth
1.4% margin — thin
Operating margin of 3.9%
Earnings declined 50.2%
0.3% revenue growth
2.2% margin — thin
Operating margin of 3.9%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : GPI
The strongest argument for GPI centers on PEG Ratio, Price/Book, Altman Z-Score. PEG of 0.33 suggests the stock is reasonably priced for its growth.
Bull Case : LAD
The strongest argument for LAD centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.44 suggests the stock is reasonably priced for its growth.
Bear Case : GPI
The primary concerns for GPI are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 2.10 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 2.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.20 — expect wider price swings.
GPI is growing revenue faster at 0.6% — sustainability is the question.
LAD generates stronger free cash flow (66M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (58/100 vs 55/100). 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.
Group 1 Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Group 1 Automotive, Inc., operates in the automotive retail industry. The company is headquartered in Houston, Texas.
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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