Driven Brands Holdings Inc (DRVN)vsLithia Motors Inc (LAD)
DRVN
Driven Brands Holdings Inc
$11.89
-1.57%
CONSUMER CYCLICAL · Cap: $1.99B
LAD
Lithia Motors Inc
$308.77
-2.45%
CONSUMER CYCLICAL · Cap: $6.35B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 1878% more annual revenue ($38.21B vs $1.93B). DRVN leads profitability with a 8.6% profit margin vs 2.1%. LAD appears more attractively valued with a PEG of 0.58. LAD earns a higher WallStSmart Score of 68/100 (B-).
DRVN
Buy62
out of 100
Grade: C+
LAD
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-5.6%
Fair Value
$16.02
Current Price
$11.89
$4.13 premium
Margin of Safety
+12.2%
Fair Value
$364.90
Current Price
$308.77
$56.13 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 20 in profit
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 53.5% YoY
Growing faster than its price suggests
Areas to Watch
Smaller company, higher risk/reward
Earnings declined 37.0%
Distress zone — elevated risk
Elevated debt levels
2.8% revenue growth
2.1% margin — thin
Operating margin of 4.2%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DRVN
The strongest argument for DRVN centers on Return on Equity, PEG Ratio, P/E Ratio. PEG of 0.93 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 : DRVN
The primary concerns for DRVN are Market Cap, EPS Growth, Altman Z-Score. Debt-to-equity of 2.66 is elevated, increasing financial risk.
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.
DRVN is growing revenue faster at 6.8% — sustainability is the question.
DRVN generates stronger free cash flow (29M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (68/100 vs 62/100). 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.
Driven Brands Holdings Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Driven Brands Holdings Inc. provides automotive services to retail and commercial clients in North America and internationally. The company is headquartered in Charlotte, North Carolina.
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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