Lithia Motors Inc (LAD)vsAltria Group (MO)
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
MO
Altria Group
$68.12
-1.33%
CONSUMER DEFENSIVE · Cap: $115.29B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 85% more annual revenue ($37.73B vs $20.38B). MO leads profitability with a 39.5% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. MO earns a higher WallStSmart Score of 61/100 (C+).
LAD
Buy55
out of 100
Grade: C
MO
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+53.9%
Fair Value
$694.31
Current Price
$293.99
$400.32 discount
Margin of Safety
-37.1%
Fair Value
$48.09
Current Price
$68.12
$20.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Growing faster than its price suggests
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 62.3%
Earnings expanding 106.3% YoY
Conservative balance sheet, low leverage
Large-cap with strong market position
Attractively priced relative to earnings
Areas to Watch
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
Expensive relative to growth rate
ROE of 0.0% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : MO
The strongest argument for MO centers on Profit Margin, Operating Margin, EPS Growth. Profitability is solid with margins at 39.5% and operating margin at 62.3%.
Bear Case : LAD
The primary concerns for LAD are Revenue Growth, Profit Margin, Operating Margin. Thin 1.9% margins leave little buffer for downturns.
Bear Case : MO
The primary concerns for MO are PEG Ratio, Return on Equity.
Key Dynamics to Monitor
LAD profiles as a value stock while MO is a mature play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.28 — expect wider price swings.
MO is growing revenue faster at 5.3% — sustainability is the question.
MO generates stronger free cash flow (2.2B), providing more financial flexibility.
Bottom Line
MO scores higher overall (61/100 vs 55/100), backed by strong 39.5% margins. 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.
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.
Altria Group
CONSUMER DEFENSIVE · TOBACCO · USA
Altria Group, Inc. (previously known as Philip Morris Companies, Inc.) is an American corporation and one of the world's largest producers and marketers of tobacco, cigarettes and related products. It operates worldwide and is headquartered in unincorporated Henrico County, Virginia, just outside the city of Richmond.
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