Lithia Motors Inc (LAD)vsRoyal Bank of Canada (RY)
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
RY
Royal Bank of Canada
$181.68
+0.18%
FINANCIAL SERVICES · Cap: $252.56B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 68% more annual revenue ($63.42B vs $37.73B). RY leads profitability with a 33.1% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. RY earns a higher WallStSmart Score of 68/100 (B-).
LAD
Buy55
out of 100
Grade: C
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.9%
Fair Value
$694.31
Current Price
$293.99
$400.32 discount
Intrinsic value data unavailable for RY.
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
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
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
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 : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.
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 : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
LAD profiles as a value stock while RY is a mature play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.28 — expect wider price swings.
RY is growing revenue faster at 7.5% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 55/100), backed by strong 33.1% margins. LAD offers better value entry with a 53.9% margin of safety. 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.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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