WallStSmart

Lithia Motors Inc (LAD)vsLowe's Companies Inc (LOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 129% more annual revenue ($86.29B vs $37.63B). LOW leads profitability with a 7.7% profit margin vs 2.2%. LAD appears more attractively valued with a PEG of 0.54. LAD earns a higher WallStSmart Score of 55/100 (C).

LAD

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 6.7Quality: 5.3
Piotroski: 2/9Altman Z: 2.51

LOW

Hold

44

out of 100

Grade: D

Growth: 3.3Profit: 5.5Value: 3.3Quality: 7.0
Piotroski: 5/9Altman Z: 2.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LADSignificantly Overvalued (-50.4%)

Margin of Safety

-50.4%

Fair Value

$212.98

Current Price

$276.58

$63.60 premium

UndervaluedFair: $212.98Overvalued
LOWSignificantly Overvalued (-47.0%)

Margin of Safety

-47.0%

Fair Value

$166.85

Current Price

$245.19

$78.34 premium

UndervaluedFair: $166.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LAD3 strengths · Avg: 9.3/10
P/E RatioValuation
8.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.548/10

Growing faster than its price suggests

LOW2 strengths · Avg: 9.5/10
Debt/EquityHealth
-4.3110/10

Conservative balance sheet, low leverage

Market CapQuality
$137.32B9/10

Large-cap with strong market position

Areas to Watch

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Profit MarginProfitability
2.2%3/10

2.2% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

LOW4 concerns · Avg: 2.5/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
7.7%3/10

7.7% margin — thin

PEG RatioValuation
2.672/10

Expensive relative to growth rate

EPS GrowthGrowth
-11.0%2/10

Earnings declined 11.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : LAD

The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.54 suggests the stock is reasonably priced for its growth.

Bull Case : LOW

The strongest argument for LOW centers on Debt/Equity, Market Cap. Revenue growth of 10.9% demonstrates continued momentum.

Bear Case : LAD

The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 2.2% margins leave little buffer for downturns.

Bear Case : LOW

The primary concerns for LOW are Return on Equity, Profit Margin, PEG Ratio.

Key Dynamics to Monitor

LAD carries more volatility with a beta of 1.22 — expect wider price swings.

LOW is growing revenue faster at 10.9% — sustainability is the question.

LOW generates stronger free cash flow (964M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LAD scores higher overall (55/100 vs 44/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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.

Lowe's Companies Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.

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