Lithia Motors Inc (LAD)vsSonic Automotive Inc (SAH)
LAD
Lithia Motors Inc
$375.63
-0.04%
CONSUMER CYCLICAL · Cap: $8.47B
SAH
Sonic Automotive Inc
$82.44
-2.89%
CONSUMER CYCLICAL · Cap: $2.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 145% more annual revenue ($37.94B vs $15.47B). LAD leads profitability with a 1.9% profit margin vs 1.4%. SAH appears more attractively valued with a PEG of 0.45. LAD earns a higher WallStSmart Score of 61/100 (C+).
LAD
Buy61
out of 100
Grade: C+
SAH
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.2%
Fair Value
$364.72
Current Price
$375.63
$10.91 discount
Margin of Safety
-26.7%
Fair Value
$48.04
Current Price
$82.44
$34.40 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
2.2% revenue growth
1.9% margin — thin
Operating margin of 4.6%
Weak financial health signals
1.4% margin — thin
Operating margin of 3.4%
Earnings declined 12.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : LAD
The strongest argument for LAD centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.80 suggests the stock is reasonably priced for its growth.
Bull Case : SAH
The strongest argument for SAH centers on PEG Ratio, Altman Z-Score, P/E Ratio. PEG of 0.45 suggests the stock is reasonably priced for its growth.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 2.53 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.
Bear Case : SAH
The primary concerns for SAH are Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.51 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.26 — expect wider price swings.
SAH is growing revenue faster at 7.6% — sustainability is the question.
SAH generates stronger free cash flow (-2M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (61/100 vs 59/100). 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.
Sonic Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.
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