Lithia Motors Inc (LAD)vsVale SA ADR (VALE)
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
VALE
Vale SA ADR
$16.63
+2.72%
BASIC MATERIALS · Cap: $69.04B
Smart Verdict
WallStSmart Research — data-driven comparison
Vale SA ADR generates 470% more annual revenue ($214.86B vs $37.73B). VALE leads profitability with a 7.3% profit margin vs 1.9%. VALE appears more attractively valued with a PEG of 0.33. VALE earns a higher WallStSmart Score of 67/100 (B-).
LAD
Buy55
out of 100
Grade: C
VALE
Strong Buy67
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
Margin of Safety
+81.8%
Fair Value
$95.70
Current Price
$16.63
$79.07 discount
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
Growing faster than its price suggests
Large-cap with strong market position
Reasonable price relative to book value
Strong operational efficiency at 28.1%
Earnings expanding 22.0% YoY
Areas to Watch
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
2.7% revenue growth
ROE of 6.8% — below average capital efficiency
7.3% margin — thin
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 : VALE
The strongest argument for VALE centers on PEG Ratio, Market Cap, Price/Book. PEG of 0.33 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 1.9% margins leave little buffer for downturns.
Bear Case : VALE
The primary concerns for VALE are Revenue Growth, Return on Equity, Profit Margin.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.28 — expect wider price swings.
VALE is growing revenue faster at 2.7% — sustainability is the question.
VALE generates stronger free cash flow (700M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
VALE scores higher overall (67/100 vs 55/100). 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.
Vale SA ADR
BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA
Vale SA produces and sells iron ore and iron ore pellets for use as raw material in steelmaking in Brazil and internationally. The company is headquartered in Rio de Janeiro, Brazil.
Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
Want to dig deeper into these stocks?