WallStSmart

AutoNation Inc (AN)vsLithia Motors Inc (LAD)

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Smart Verdict

WallStSmart Research — data-driven comparison

Lithia Motors Inc generates 39% more annual revenue ($38.21B vs $27.45B). AN leads profitability with a 2.8% profit margin vs 2.1%. AN appears more attractively valued with a PEG of 0.46. LAD earns a higher WallStSmart Score of 68/100 (B-).

AN

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 6.0Value: 8.3Quality: 4.5
Piotroski: 4/9Altman Z: 2.85

LAD

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 5.0Value: 8.0Quality: 4.0
Piotroski: 2/9Altman Z: 2.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AN.

LADUndervalued (+12.2%)

Margin of Safety

+12.2%

Fair Value

$364.90

Current Price

$309.66

$55.24 discount

UndervaluedFair: $364.90Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN5 strengths · Avg: 9.6/10
PEG RatioValuation
0.4610/10

Growing faster than its price suggests

P/E RatioValuation
7.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.5%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
138.5%10/10

Earnings expanding 138.5% YoY

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

LAD4 strengths · Avg: 9.5/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
53.5%10/10

Earnings expanding 53.5% YoY

PEG RatioValuation
0.588/10

Growing faster than its price suggests

Areas to Watch

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

2.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

Free Cash FlowQuality
$-140.70M2/10

Negative free cash flow — burning cash

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
2.8%4/10

2.8% revenue growth

Profit MarginProfitability
2.1%3/10

2.1% margin — thin

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on PEG Ratio, P/E Ratio, Return on Equity. PEG of 0.46 suggests the stock is reasonably priced for its growth.

Bull Case : LAD

The strongest argument for LAD centers on P/E Ratio, Price/Book, EPS Growth. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Revenue Growth. Debt-to-equity of 5.02 is elevated, increasing financial risk. 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 2.43 is elevated, increasing financial risk. Thin 2.1% 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 2.8% — sustainability is the question.

LAD generates stronger free cash flow (-130M), providing more financial flexibility.

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

Bottom Line

LAD scores higher overall (68/100 vs 66/100). Both earn "Strong Buy" and "Strong 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.

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