Edwards Lifesciences Corp (EW)vsLithia Motors Inc (LAD)
EW
Edwards Lifesciences Corp
$79.96
-3.38%
HEALTHCARE · Cap: $47.71B
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 499% more annual revenue ($37.73B vs $6.30B). EW leads profitability with a 17.4% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. EW earns a higher WallStSmart Score of 61/100 (C+).
EW
Buy61
out of 100
Grade: C+
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+69.7%
Fair Value
$261.90
Current Price
$79.96
$181.94 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
Strong operational efficiency at 31.2%
16.7% revenue growth
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Premium valuation, high expectations priced in
Negative free cash flow — burning cash
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : EW
The strongest argument for EW centers on Operating Margin, Revenue Growth. Profitability is solid with margins at 17.4% and operating margin at 31.2%. Revenue growth of 16.7% demonstrates continued momentum.
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 : EW
The primary concerns for EW are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 44.7x leaves little room for execution misses.
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
EW profiles as a growth 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.
EW is growing revenue faster at 16.7% — sustainability is the question.
EW generates stronger free cash flow (-21M), providing more financial flexibility.
Bottom Line
EW scores higher overall (61/100 vs 55/100), backed by strong 17.4% margins and 16.7% revenue growth. 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.
Edwards Lifesciences Corp
HEALTHCARE · MEDICAL DEVICES · USA
Edwards Lifesciences is an American medical technology company headquartered in Irvine, California, specializing in artificial heart valves and hemodynamic monitoring.
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.
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