Group 1 Automotive Inc (GPI)vsLithia Motors Inc (LAD)
GPI
Group 1 Automotive Inc
$278.27
-1.28%
CONSUMER CYCLICAL · Cap: $3.36B
LAD
Lithia Motors Inc
$358.02
-2.22%
CONSUMER CYCLICAL · Cap: $8.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 71% more annual revenue ($37.94B vs $22.15B). LAD leads profitability with a 1.9% profit margin vs 1.3%. GPI appears more attractively valued with a PEG of 0.34. LAD earns a higher WallStSmart Score of 61/100 (C+).
GPI
Buy51
out of 100
Grade: C-
LAD
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for GPI.
Margin of Safety
+12.0%
Fair Value
$364.07
Current Price
$358.02
$6.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
1.3% margin — thin
Operating margin of 3.8%
Revenue declined 5.6%
Earnings declined 20.1%
2.2% revenue growth
1.9% margin — thin
Operating margin of 4.6%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : GPI
The strongest argument for GPI centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.34 suggests the stock is reasonably priced for its growth.
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 : GPI
The primary concerns for GPI are Profit Margin, Operating Margin, Revenue Growth. Debt-to-equity of 2.03 is elevated, increasing financial risk. Thin 1.3% margins leave little buffer for downturns.
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
LAD carries more volatility with a beta of 1.23 — expect wider price swings.
LAD is growing revenue faster at 2.2% — sustainability is the question.
GPI generates stronger free cash flow (84M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (61/100 vs 51/100). 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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