WallStSmart

Carvana Co (CVNA)vsLithia Motors Inc (LAD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lithia Motors Inc generates 68% more annual revenue ($37.94B vs $22.52B). CVNA leads profitability with a 6.4% profit margin vs 1.9%. LAD trades at a lower P/E of 12.8x. LAD earns a higher WallStSmart Score of 61/100 (C+).

CVNA

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 7.0Value: 3.7Quality: 7.0
Piotroski: 5/9Altman Z: 2.18

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

CVNASignificantly Overvalued (-61.5%)

Margin of Safety

-61.5%

Fair Value

$40.92

Current Price

$68.04

$27.12 premium

UndervaluedFair: $40.92Overvalued
LADUndervalued (+12.2%)

Margin of Safety

+12.2%

Fair Value

$364.72

Current Price

$370.99

$6.27 discount

UndervaluedFair: $364.72Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CVNA3 strengths · Avg: 9.7/10
Return on EquityProfitability
42.9%10/10

Every $100 of equity generates 43 in profit

Revenue GrowthGrowth
52.0%10/10

Revenue surging 52.0% year-over-year

Market CapQuality
$68.83B9/10

Large-cap with strong market position

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

CVNA4 concerns · Avg: 3.5/10
P/E RatioValuation
38.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
13.1x4/10

Trading at 13.1x book value

Profit MarginProfitability
6.4%3/10

6.4% margin — thin

Debt/EquityHealth
1.493/10

Elevated debt levels

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 : CVNA

The strongest argument for CVNA centers on Return on Equity, Revenue Growth, Market Cap. Revenue growth of 52.0% demonstrates continued momentum.

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 : CVNA

The primary concerns for CVNA are P/E Ratio, Price/Book, Profit Margin.

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

CVNA profiles as a hypergrowth stock while LAD is a value play — different risk/reward profiles.

CVNA carries more volatility with a beta of 3.46 — expect wider price swings.

CVNA is growing revenue faster at 52.0% — sustainability is the question.

CVNA generates stronger free cash flow (56M), providing more financial flexibility.

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.

Carvana Co

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Carvana Co., operates an e-commerce platform to buy and sell used cars in the United States. The company is headquartered in Tempe, Arizona.

Visit Website →

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?