WallStSmart

AutoNation Inc (AN)vsLithia Motors Inc (LAD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lithia Motors Inc generates 37% more annual revenue ($37.73B vs $27.49B). AN leads profitability with a 2.5% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.70. AN earns a higher WallStSmart Score of 66/100 (B-).

AN

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 6.0Value: 7.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.83

LAD

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 8.0Quality: 4.5
Piotroski: 2/9Altman Z: 2.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AN.

LADUndervalued (+8.7%)

Margin of Safety

+8.7%

Fair Value

$350.78

Current Price

$288.84

$61.94 discount

UndervaluedFair: $350.78Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN5 strengths · Avg: 8.8/10
P/E RatioValuation
10.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.5%10/10

Every $100 of equity generates 30 in profit

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
31.5%8/10

Earnings expanding 31.5% YoY

LAD3 strengths · Avg: 9.3/10
P/E RatioValuation
10.9x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.708/10

Growing faster than its price suggests

Areas to Watch

AN4 concerns · Avg: 2.8/10
Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Debt/EquityHealth
1.513/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.71 suggests the stock is reasonably priced for its growth.

Bull Case : LAD

The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.70 suggests the stock is reasonably priced for its growth.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Debt-to-equity of 4.71 is elevated, increasing financial risk. Thin 2.5% 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 1.51 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 1.0% — sustainability is the question.

AN generates stronger free cash flow (-34M), providing more financial flexibility.

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

Bottom Line

AN scores higher overall (66/100 vs 55/100). 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.

AutoNation Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.

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.

Want to dig deeper into these stocks?