Group 1 Automotive Inc (GPI)vsLithia Motors Inc (LAD)
GPI
Group 1 Automotive Inc
$311.00
+1.82%
CONSUMER CYCLICAL · Cap: $3.87B
LAD
Lithia Motors Inc
$288.84
-0.61%
CONSUMER CYCLICAL · Cap: $7.15B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 68% more annual revenue ($37.73B vs $22.47B). LAD leads profitability with a 1.9% profit margin vs 1.5%. GPI appears more attractively valued with a PEG of 0.39. GPI earns a higher WallStSmart Score of 59/100 (C).
GPI
Buy59
out of 100
Grade: C
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for GPI.
Margin of Safety
+8.7%
Fair Value
$350.78
Current Price
$288.84
$61.94 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Reasonable price relative to book value
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
1.5% margin — thin
Operating margin of 4.5%
Elevated debt levels
Revenue declined 1.8%
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : GPI
The strongest argument for GPI centers on PEG Ratio, Price/Book, Altman Z-Score. PEG of 0.39 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 0.70 suggests the stock is reasonably priced for its growth.
Bear Case : GPI
The primary concerns for GPI are Profit Margin, Operating Margin, Debt/Equity. Debt-to-equity of 1.98 is elevated, increasing financial risk. Thin 1.5% margins leave little buffer for downturns.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 1.51 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.26 — expect wider price swings.
LAD is growing revenue faster at 1.0% — sustainability is the question.
GPI generates stronger free cash flow (-2M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GPI scores higher overall (59/100 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.
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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