Lithia Motors Inc (LAD)vsSonic Automotive Inc (SAH)
LAD
Lithia Motors Inc
$254.20
+0.89%
CONSUMER CYCLICAL · Cap: $5.89B
SAH
Sonic Automotive Inc
$65.31
+1.59%
CONSUMER CYCLICAL · Cap: $2.19B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 148% more annual revenue ($37.63B vs $15.15B). SAH leads profitability with a 78.0% profit margin vs 2.2%. SAH appears more attractively valued with a PEG of 0.31. LAD earns a higher WallStSmart Score of 58/100 (C).
LAD
Buy58
out of 100
Grade: C
SAH
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-45.8%
Fair Value
$219.84
Current Price
$254.20
$34.36 premium
Margin of Safety
-161.6%
Fair Value
$23.26
Current Price
$65.31
$42.05 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Keeps 78 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
0.3% revenue growth
2.2% margin — thin
Operating margin of 3.9%
Weak financial health signals
Operating margin of 3.3%
Weak financial health signals
Revenue declined 60.0%
Earnings declined 18.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : LAD
The strongest argument for LAD centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.44 suggests the stock is reasonably priced for its growth.
Bull Case : SAH
The strongest argument for SAH centers on PEG Ratio, Profit Margin, Price/Book. Profitability is solid with margins at 78.0% and operating margin at 3.3%. PEG of 0.31 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 2.2% margins leave little buffer for downturns.
Bear Case : SAH
The primary concerns for SAH are Operating Margin, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
LAD profiles as a value stock while SAH is a declining play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.20 — expect wider price swings.
LAD is growing revenue faster at 0.3% — sustainability is the question.
LAD generates stronger free cash flow (66M), providing more financial flexibility.
Bottom Line
LAD scores higher overall (58/100 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.
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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