WallStSmart

Lithia Motors Inc (LAD)vsTesla Inc (TSLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Tesla Inc generates 152% more annual revenue ($94.83B vs $37.63B). TSLA leads profitability with a 4.0% profit margin vs 2.2%. LAD appears more attractively valued with a PEG of 0.44. LAD earns a higher WallStSmart Score of 58/100 (C).

LAD

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 5.0Value: 7.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.51

TSLA

Avoid

23

out of 100

Grade: F

Growth: 3.3Profit: 4.0Value: 2.0Quality: 7.5
Piotroski: 3/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LADSignificantly Overvalued (-45.8%)

Margin of Safety

-45.8%

Fair Value

$219.78

Current Price

$252.66

$32.88 premium

UndervaluedFair: $219.78Overvalued
TSLASignificantly Overvalued (-4954.4%)

Margin of Safety

-4954.4%

Fair Value

$7.28

Current Price

$367.96

$360.68 premium

UndervaluedFair: $7.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LAD4 strengths · Avg: 10.0/10
PEG RatioValuation
0.4410/10

Growing faster than its price suggests

P/E RatioValuation
7.5x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Revenue GrowthGrowth
30.0%10/10

Revenue surging 30.0% year-over-year

TSLA3 strengths · Avg: 9.0/10
Market CapQuality
$1.38T10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.42B8/10

Generating 1.4B in free cash flow

Areas to Watch

LAD4 concerns · Avg: 2.8/10
Profit MarginProfitability
2.2%3/10

2.2% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

EPS GrowthGrowth
-28.4%2/10

Earnings declined 28.4%

TSLA4 concerns · Avg: 3.3/10
Price/BookValuation
16.8x4/10

Trading at 16.8x book value

Return on EquityProfitability
4.9%3/10

ROE of 4.9% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : LAD

The strongest argument for LAD centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 30.0% demonstrates continued momentum. PEG of 0.44 suggests the stock is reasonably priced for its growth.

Bull Case : TSLA

The strongest argument for TSLA centers on Market Cap, Debt/Equity, Free Cash Flow.

Bear Case : LAD

The primary concerns for LAD are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.2% margins leave little buffer for downturns.

Bear Case : TSLA

The primary concerns for TSLA are Price/Book, Return on Equity, Profit Margin. A P/E of 343.9x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

LAD profiles as a growth stock while TSLA is a value play — different risk/reward profiles.

TSLA carries more volatility with a beta of 1.93 — expect wider price swings.

LAD is growing revenue faster at 30.0% — sustainability is the question.

TSLA generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

LAD scores higher overall (58/100 vs 23/100) and 30.0% revenue growth. Both earn "Buy" and "Avoid" 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.

Tesla Inc

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.

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