Lithia Motors Inc (LAD)vsLowe's Companies Inc (LOW)
LAD
Lithia Motors Inc
$358.02
-2.22%
CONSUMER CYCLICAL · Cap: $8.11B
LOW
Lowe's Companies Inc
$196.82
+0.12%
CONSUMER CYCLICAL · Cap: $110.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Lowe's Companies Inc generates 138% more annual revenue ($90.43B vs $37.94B). LOW leads profitability with a 7.3% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.72. LAD earns a higher WallStSmart Score of 61/100 (C+).
LAD
Buy61
out of 100
Grade: C+
LOW
Hold50
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.0%
Fair Value
$364.07
Current Price
$358.02
$6.05 discount
Margin of Safety
-36.2%
Fair Value
$144.51
Current Price
$196.82
$52.31 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Growing faster than its price suggests
Attractively priced relative to earnings
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Generating 3.1B in free cash flow
Areas to Watch
2.2% revenue growth
1.9% margin — thin
Operating margin of 4.6%
Weak financial health signals
0.0% earnings growth
Grey zone — moderate risk
ROE of 0.0% — below average capital efficiency
7.3% margin — thin
Comparative Analysis Report
WallStSmart ResearchBull Case : LAD
The strongest argument for LAD centers on Price/Book, PEG Ratio, P/E Ratio. PEG of 0.72 suggests the stock is reasonably priced for its growth.
Bull Case : LOW
The strongest argument for LOW centers on Debt/Equity, Market Cap, P/E Ratio. PEG of 1.33 suggests the stock is reasonably priced for its growth.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Debt-to-equity of 2.58 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.
Bear Case : LOW
The primary concerns for LOW are EPS Growth, Altman Z-Score, Return on Equity.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.23 — expect wider price swings.
LOW is growing revenue faster at 8.3% — sustainability is the question.
LOW generates stronger free cash flow (3.1B), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (61/100 vs 50/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
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.
Lowe's Companies Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.
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