Lithia Motors Inc (LAD)vsPenske Automotive Group Inc (PAG)
LAD
Lithia Motors Inc
$286.38
+1.54%
CONSUMER CYCLICAL · Cap: $6.63B
PAG
Penske Automotive Group Inc
$164.91
-2.90%
CONSUMER CYCLICAL · Cap: $11.17B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 19% more annual revenue ($37.73B vs $31.72B). PAG leads profitability with a 2.9% profit margin vs 1.9%. 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
PAG
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.9%
Fair Value
$694.85
Current Price
$286.38
$408.48 discount
Margin of Safety
-2.0%
Fair Value
$169.87
Current Price
$164.91
$4.96 premium
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
Attractively priced relative to earnings
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
Expensive relative to growth rate
3.4% revenue growth
2.9% margin — thin
Operating margin of 3.7%
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 : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
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 : PAG
The primary concerns for PAG are PEG Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.22 — expect wider price swings.
PAG is growing revenue faster at 3.4% — sustainability is the question.
PAG generates stronger free cash flow (152M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (55/100 vs 53/100). 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.
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.
Penske Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.
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