Lithia Motors Inc (LAD)vsPPG Industries Inc (PPG)
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
PPG
PPG Industries Inc
$109.61
+0.62%
BASIC MATERIALS · Cap: $24.28B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 134% more annual revenue ($37.73B vs $16.12B). PPG leads profitability with a 9.8% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. PPG earns a higher WallStSmart Score of 60/100 (C+).
LAD
Buy55
out of 100
Grade: C
PPG
Buy60
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
+16.0%
Fair Value
$155.95
Current Price
$109.61
$46.34 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
Every $100 of equity generates 21 in profit
Attractively priced relative to earnings
Areas to Watch
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
4.2% earnings growth
Negative free cash flow — burning cash
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 : PPG
The strongest argument for PPG centers on Return on Equity, P/E Ratio. PEG of 1.44 suggests the stock is reasonably priced for its growth.
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 : PPG
The primary concerns for PPG are EPS Growth, Free Cash Flow.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.28 — expect wider price swings.
PPG is growing revenue faster at 6.7% — sustainability is the question.
PPG generates stronger free cash flow (-163M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
PPG scores higher overall (60/100 vs 55/100). LAD offers better value entry with a 53.9% 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.
PPG Industries Inc
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe.
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