Lithia Motors Inc (LAD)vsOmnicom Group Inc (OMC)
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
OMC
Omnicom Group Inc
$77.06
+0.18%
COMMUNICATION SERVICES · Cap: $21.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 90% more annual revenue ($37.73B vs $19.82B). LAD leads profitability with a 1.9% profit margin vs 0.3%. LAD appears more attractively valued with a PEG of 0.64. LAD earns a higher WallStSmart Score of 55/100 (C).
LAD
Buy55
out of 100
Grade: C
OMC
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.9%
Fair Value
$694.31
Current Price
$293.99
$400.32 discount
Margin of Safety
+23.7%
Fair Value
$90.88
Current Price
$77.06
$13.82 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Revenue surging 69.2% year-over-year
Reasonable price relative to book value
Areas to Watch
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
ROE of 2.0% — below average capital efficiency
0.3% margin — thin
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : OMC
The strongest argument for OMC centers on Revenue Growth, Price/Book. Revenue growth of 69.2% demonstrates continued momentum.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.
Bear Case : OMC
The primary concerns for OMC are Return on Equity, Profit Margin, Piotroski F-Score. Thin 0.3% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD profiles as a value stock while OMC is a hypergrowth play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.28 — expect wider price swings.
OMC is growing revenue faster at 69.2% — sustainability is the question.
LAD generates stronger free cash flow (-206M), providing more financial flexibility.
Bottom Line
LAD scores higher overall (55/100 vs 51/100). OMC offers better value entry with a 23.7% 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.
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.
Omnicom Group Inc
COMMUNICATION SERVICES · ADVERTISING AGENCIES · USA
Omnicom Group Inc. is an American global media, marketing and corporate communications holding company, headquartered in New York City.
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