WallStSmart

CarGurus (CARG)vsLithia Motors Inc (LAD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lithia Motors Inc generates 4049% more annual revenue ($37.63B vs $906.98M). CARG leads profitability with a 17.2% profit margin vs 2.2%. LAD appears more attractively valued with a PEG of 0.44. CARG earns a higher WallStSmart Score of 67/100 (B-).

CARG

Strong Buy

67

out of 100

Grade: B-

Growth: 5.3Profit: 9.5Value: 10.0Quality: 7.8
Piotroski: 6/9Altman Z: 4.17

LAD

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 7.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.51
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CARGUndervalued (+63.1%)

Margin of Safety

+63.1%

Fair Value

$74.48

Current Price

$35.45

$39.03 discount

UndervaluedFair: $74.48Overvalued
LADSignificantly Overvalued (-45.8%)

Margin of Safety

-45.8%

Fair Value

$219.84

Current Price

$254.20

$34.36 premium

UndervaluedFair: $219.84Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CARG4 strengths · Avg: 9.0/10
Return on EquityProfitability
43.0%10/10

Every $100 of equity generates 43 in profit

Altman Z-ScoreHealth
4.1710/10

Safe zone — low bankruptcy risk

P/E RatioValuation
17.8x8/10

Attractively priced relative to earnings

Operating MarginProfitability
28.7%8/10

Strong operational efficiency at 28.7%

LAD3 strengths · Avg: 10.0/10
PEG RatioValuation
0.4410/10

Growing faster than its price suggests

P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Areas to Watch

CARG1 concerns · Avg: 4.0/10
Price/BookValuation
9.0x4/10

Trading at 9.0x book value

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
0.3%4/10

0.3% revenue growth

Profit MarginProfitability
2.2%3/10

2.2% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : CARG

The strongest argument for CARG centers on Return on Equity, Altman Z-Score, P/E Ratio. Profitability is solid with margins at 17.2% and operating margin at 28.7%. PEG of 1.01 suggests the stock is reasonably priced for its growth.

Bull 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.

Bear Case : CARG

The primary concerns for CARG are Price/Book.

Bear Case : LAD

The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 2.2% margins leave little buffer for downturns.

Key Dynamics to Monitor

CARG profiles as a mature stock while LAD is a value play — different risk/reward profiles.

CARG carries more volatility with a beta of 1.41 — expect wider price swings.

CARG is growing revenue faster at 5.5% — sustainability is the question.

CARG generates stronger free cash flow (82M), providing more financial flexibility.

Bottom Line

CARG scores higher overall (67/100 vs 58/100), backed by strong 17.2% margins. 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.

CarGurus

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

CarGurus, Inc. operates an online automotive marketplace that connects buyers and sellers of new and used cars in the United States and internationally. The company is headquartered in Cambridge, Massachusetts.

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?