Howmet Aerospace Inc (HWM)vsLithia Motors Inc (LAD)
HWM
Howmet Aerospace Inc
$270.56
-0.73%
INDUSTRIALS · Cap: $109.27B
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 357% more annual revenue ($37.73B vs $8.25B). HWM leads profitability with a 18.3% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. HWM earns a higher WallStSmart Score of 69/100 (B-).
HWM
Strong Buy69
out of 100
Grade: B-
LAD
Buy55
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for HWM.
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
Every $100 of equity generates 30 in profit
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 26.3%
Earnings expanding 20.3% YoY
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
Premium valuation, high expectations priced in
Trading at 20.3x book value
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
Comparative Analysis Report
WallStSmart ResearchBull Case : HWM
The strongest argument for HWM centers on Return on Equity, Market Cap, PEG Ratio. Profitability is solid with margins at 18.3% and operating margin at 26.3%. Revenue growth of 14.6% 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 : HWM
The primary concerns for HWM are P/E Ratio, Price/Book. A P/E of 63.2x 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
HWM profiles as a mature 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.
HWM is growing revenue faster at 14.6% — sustainability is the question.
HWM generates stronger free cash flow (359M), providing more financial flexibility.
Bottom Line
HWM scores higher overall (69/100 vs 55/100), backed by strong 18.3% margins and 14.6% revenue growth. LAD offers better value entry with a 53.9% margin of safety. 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.
Howmet Aerospace Inc
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.
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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