ACV Auctions Inc. (ACVA)vsLithia Motors Inc (LAD)
ACVA
ACV Auctions Inc.
$10.41
+44.18%
CONSUMER CYCLICAL · Cap: $1.29B
LAD
Lithia Motors Inc
$358.02
-2.22%
CONSUMER CYCLICAL · Cap: $8.11B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 4634% more annual revenue ($37.94B vs $801.34M). LAD leads profitability with a 1.9% profit margin vs -7.9%. LAD earns a higher WallStSmart Score of 61/100 (C+).
ACVA
Avoid34
out of 100
Grade: F
LAD
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+56.9%
Fair Value
$16.70
Current Price
$10.41
$6.29 discount
Margin of Safety
+12.0%
Fair Value
$364.07
Current Price
$358.02
$6.05 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
No standout strengths identified
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Areas to Watch
0.0% earnings growth
Smaller company, higher risk/reward
ROE of -14.4% — below average capital efficiency
Negative free cash flow — burning cash
2.2% revenue growth
1.9% margin — thin
Operating margin of 4.6%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : ACVA
Revenue growth of 10.4% demonstrates continued momentum.
Bull Case : LAD
The strongest argument for LAD centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.72 suggests the stock is reasonably priced for its growth.
Bear Case : ACVA
The primary concerns for ACVA are EPS Growth, Market Cap, Return on Equity.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 2.58 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
ACVA profiles as a turnaround stock while LAD is a value play — different risk/reward profiles.
ACVA carries more volatility with a beta of 1.83 — expect wider price swings.
ACVA is growing revenue faster at 10.4% — sustainability is the question.
ACVA generates stronger free cash flow (-44M), providing more financial flexibility.
Bottom Line
LAD scores higher overall (61/100 vs 34/100). ACVA offers better value entry with a 56.9% margin of safety. 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.
ACV Auctions Inc.
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
ACV Auctions, Inc., operates a digital marketplace that connects buyers and sellers for online wholesale vehicle auctions. The company is headquartered in Buffalo, New York.
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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