Driven Brands Holdings Inc (DRVN)vsLithia Motors Inc (LAD)
DRVN
Driven Brands Holdings Inc
$13.41
-2.47%
CONSUMER CYCLICAL · Cap: $2.26B
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 1447% more annual revenue ($37.73B vs $2.44B). LAD leads profitability with a 1.9% profit margin vs -8.1%. LAD appears more attractively valued with a PEG of 0.64. DRVN earns a higher WallStSmart Score of 59/100 (C).
DRVN
Buy59
out of 100
Grade: C
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+38.9%
Fair Value
$27.66
Current Price
$13.41
$14.25 discount
Margin of Safety
+53.9%
Fair Value
$694.31
Current Price
$293.99
$400.32 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 56.9% YoY
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
ROE of -27.3% — below average capital efficiency
Currently unprofitable
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : DRVN
The strongest argument for DRVN centers on EPS Growth, Price/Book. PEG of 1.08 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 0.64 suggests the stock is reasonably priced for its growth.
Bear Case : DRVN
The primary concerns for DRVN are Return on Equity, Profit Margin.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
DRVN profiles as a turnaround stock while LAD is a value play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.28 — expect wider price swings.
DRVN is growing revenue faster at 6.6% — sustainability is the question.
DRVN generates stronger free cash flow (39M), providing more financial flexibility.
Bottom Line
DRVN scores higher overall (59/100 vs 55/100). LAD offers better value entry with a 53.9% margin of safety. 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.
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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