Lithia Motors Inc (LAD)vsSterling Construction Company Inc (STRL)
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
STRL
Sterling Construction Company Inc
$844.80
+4.12%
INDUSTRIALS · Cap: $24.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 1415% more annual revenue ($37.73B vs $2.49B). STRL leads profitability with a 11.7% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. LAD earns a higher WallStSmart Score of 55/100 (C).
LAD
Buy55
out of 100
Grade: C
STRL
Buy53
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
Intrinsic value data unavailable for STRL.
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 32 in profit
Revenue surging 51.5% year-over-year
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
Premium valuation, high expectations priced in
Trading at 23.4x book value
Earnings declined 22.6%
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 : STRL
The strongest argument for STRL centers on Return on Equity, Revenue Growth. Revenue growth of 51.5% demonstrates continued momentum.
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 : STRL
The primary concerns for STRL are PEG Ratio, P/E Ratio, Price/Book. A P/E of 72.5x leaves little room for execution misses.
Key Dynamics to Monitor
LAD profiles as a value stock while STRL is a growth play — different risk/reward profiles.
STRL carries more volatility with a beta of 1.64 — expect wider price swings.
STRL is growing revenue faster at 51.5% — sustainability is the question.
STRL generates stronger free cash flow (146M), providing more financial flexibility.
Bottom Line
LAD scores higher overall (55/100 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.
Sterling Construction Company Inc
INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA
Sterling Construction Company, Inc., a construction company, engages in residential construction, specialty services, and heavy civil activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. The company is headquartered in The Woodlands, Texas.
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