Lithia Motors Inc (LAD)vsValvoline Inc (VVV)
LAD
Lithia Motors Inc
$254.20
+0.89%
CONSUMER CYCLICAL · Cap: $5.89B
VVV
Valvoline Inc
$35.20
+2.39%
CONSUMER CYCLICAL · Cap: $4.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 2041% more annual revenue ($37.63B vs $1.76B). VVV leads profitability with a 4.9% profit margin vs 2.2%. LAD appears more attractively valued with a PEG of 0.44. VVV earns a higher WallStSmart Score of 69/100 (B-).
LAD
Buy58
out of 100
Grade: C
VVV
Strong Buy69
out of 100
Grade: B-
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
-20.4%
Fair Value
$32.29
Current Price
$35.20
$2.91 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
Every $100 of equity generates 33 in profit
Strong operational efficiency at 26.2%
Revenue surging 28.1% year-over-year
Earnings expanding 40.3% YoY
Areas to Watch
0.3% revenue growth
2.2% margin — thin
Operating margin of 3.9%
Weak financial health signals
Trading at 14.5x book value
4.9% margin — thin
Premium valuation, high expectations priced in
Distress zone — elevated risk
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 : VVV
The strongest argument for VVV centers on Return on Equity, Operating Margin, Revenue Growth. Revenue growth of 28.1% demonstrates continued momentum. PEG of 1.10 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 : VVV
The primary concerns for VVV are Price/Book, Profit Margin, P/E Ratio. A P/E of 49.8x leaves little room for execution misses. Thin 4.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD profiles as a value stock while VVV is a growth play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.20 — expect wider price swings.
VVV is growing revenue faster at 28.1% — sustainability is the question.
LAD generates stronger free cash flow (66M), providing more financial flexibility.
Bottom Line
VVV scores higher overall (69/100 vs 58/100) and 28.1% revenue growth. 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.
Valvoline Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Valvoline Inc. manufactures, markets and supplies automotive and engine maintenance products and services. The company is headquartered in Lexington, Kentucky.
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