WallStSmart

Asbury Automotive Group Inc (ABG)vsLithia Motors Inc (LAD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Lithia Motors Inc generates 111% more annual revenue ($37.94B vs $17.97B). ABG leads profitability with a 2.8% profit margin vs 1.9%. ABG appears more attractively valued with a PEG of 0.66. LAD earns a higher WallStSmart Score of 61/100 (C+).

ABG

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 5.5Value: 6.7Quality: 4.5
Piotroski: 3/9Altman Z: 2.50

LAD

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 5.0Value: 7.3Quality: 4.0
Piotroski: 2/9Altman Z: 2.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ABGSignificantly Overvalued (-58.7%)

Margin of Safety

-58.7%

Fair Value

$146.35

Current Price

$214.32

$67.97 premium

UndervaluedFair: $146.35Overvalued
LADUndervalued (+12.2%)

Margin of Safety

+12.2%

Fair Value

$364.72

Current Price

$375.63

$10.91 discount

UndervaluedFair: $364.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ABG3 strengths · Avg: 9.3/10
P/E RatioValuation
8.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.668/10

Growing faster than its price suggests

LAD3 strengths · Avg: 8.7/10
Price/BookValuation
1.3x10/10

Reasonable price relative to book value

PEG RatioValuation
0.808/10

Growing faster than its price suggests

P/E RatioValuation
12.8x8/10

Attractively priced relative to earnings

Areas to Watch

ABG4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Debt/EquityHealth
1.383/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.2%4/10

2.2% revenue growth

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
4.6%3/10

Operating margin of 4.6%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : ABG

The strongest argument for ABG centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.66 suggests the stock is reasonably priced for its growth.

Bull Case : LAD

The strongest argument for LAD centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.80 suggests the stock is reasonably priced for its growth.

Bear Case : ABG

The primary concerns for ABG are Revenue Growth, Profit Margin, Debt/Equity. Thin 2.8% margins leave little buffer for downturns.

Bear Case : LAD

The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 2.53 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

LAD carries more volatility with a beta of 1.26 — expect wider price swings.

LAD is growing revenue faster at 2.2% — sustainability is the question.

ABG generates stronger free cash flow (174M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LAD scores higher overall (61/100 vs 56/100). 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.

Asbury Automotive Group Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Asbury Automotive Group, Inc. is an automobile retailer in the United States. The company is headquartered in Duluth, Georgia.

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.

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