WallStSmart

Group 1 Automotive Inc (GPI)vsLithia Motors Inc (LAD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lithia Motors Inc generates 67% more annual revenue ($37.63B vs $22.57B). LAD leads profitability with a 2.2% profit margin vs 1.4%. GPI appears more attractively valued with a PEG of 0.33. LAD earns a higher WallStSmart Score of 58/100 (C).

GPI

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 7.3Quality: 5.5
Piotroski: 4/9Altman Z: 3.26

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

GPISignificantly Overvalued (-97.2%)

Margin of Safety

-97.2%

Fair Value

$170.95

Current Price

$326.86

$155.91 premium

UndervaluedFair: $170.95Overvalued
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

GPI4 strengths · Avg: 9.5/10
PEG RatioValuation
0.3310/10

Growing faster than its price suggests

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

P/E RatioValuation
12.6x8/10

Attractively priced relative to earnings

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

GPI4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
0.6%4/10

0.6% revenue growth

Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Operating MarginProfitability
3.9%3/10

Operating margin of 3.9%

EPS GrowthGrowth
-50.2%2/10

Earnings declined 50.2%

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 : GPI

The strongest argument for GPI centers on PEG Ratio, Price/Book, Altman Z-Score. PEG of 0.33 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 : GPI

The primary concerns for GPI are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 2.10 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.

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

LAD carries more volatility with a beta of 1.20 — expect wider price swings.

GPI is growing revenue faster at 0.6% — sustainability is the question.

LAD generates stronger free cash flow (66M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LAD scores higher overall (58/100 vs 55/100). 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.

Group 1 Automotive Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Group 1 Automotive, Inc., operates in the automotive retail industry. The company is headquartered in Houston, Texas.

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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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