Lithia Motors Inc (LAD)vsPenske Automotive Group Inc (PAG)
LAD
Lithia Motors Inc
$309.66
+3.32%
CONSUMER CYCLICAL · Cap: $6.35B
PAG
Penske Automotive Group Inc
$213.25
+0.53%
CONSUMER CYCLICAL · Cap: $13.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 19% more annual revenue ($38.21B vs $32.20B). PAG leads profitability with a 2.8% profit margin vs 2.1%. LAD appears more attractively valued with a PEG of 0.58. LAD earns a higher WallStSmart Score of 68/100 (B-).
LAD
Strong Buy68
out of 100
Grade: B-
PAG
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.2%
Fair Value
$364.90
Current Price
$309.66
$55.24 discount
Intrinsic value data unavailable for PAG.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 53.5% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
2.8% revenue growth
2.1% margin — thin
Operating margin of 4.2%
Weak financial health signals
2.8% margin — thin
Operating margin of 4.0%
Elevated debt levels
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, EPS Growth. PEG of 0.58 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. Debt-to-equity of 2.43 is elevated, increasing financial risk. Thin 2.1% margins leave little buffer for downturns.
Bear Case : PAG
The primary concerns for PAG are Profit Margin, Operating Margin, Debt/Equity. Debt-to-equity of 1.59 is elevated, increasing financial risk. Thin 2.8% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.26 — expect wider price swings.
PAG is growing revenue faster at 6.0% — sustainability is the question.
PAG generates stronger free cash flow (132M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (68/100 vs 52/100). 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.
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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