KAR Auction Services Inc (KAR)vsLithia Motors Inc (LAD)
KAR
KAR Auction Services Inc
$30.88
+0.36%
CONSUMER CYCLICAL · Cap: $3.28B
LAD
Lithia Motors Inc
$288.84
-0.61%
CONSUMER CYCLICAL · Cap: $7.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 1891% more annual revenue ($37.73B vs $1.90B). LAD leads profitability with a 1.9% profit margin vs 0.1%. LAD appears more attractively valued with a PEG of 0.70. KAR earns a higher WallStSmart Score of 65/100 (B-).
KAR
Strong Buy65
out of 100
Grade: B-
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-65.7%
Fair Value
$18.64
Current Price
$30.88
$12.24 premium
Margin of Safety
+8.7%
Fair Value
$350.78
Current Price
$288.84
$61.94 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Premium valuation, high expectations priced in
0.1% revenue growth
1.1% earnings growth
ROE of 0.1% — below average capital efficiency
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : KAR
The strongest argument for KAR centers on Price/Book. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.70 suggests the stock is reasonably priced for its growth.
Bear Case : KAR
The primary concerns for KAR are P/E Ratio, Revenue Growth, EPS Growth. Thin 0.1% 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 1.51 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 1.26 — expect wider price swings.
LAD is growing revenue faster at 1.0% — sustainability is the question.
KAR generates stronger free cash flow (111M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KAR scores higher overall (65/100 vs 55/100). 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.
KAR Auction Services Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
KAR Auction Services, Inc. provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company is headquartered in Carmel, Indiana.
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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