Lithia Motors Inc (LAD)vsOtter Tail Corporation (OTTR)
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
OTTR
Otter Tail Corporation
$88.03
+0.22%
INDUSTRIALS · Cap: $3.69B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 2772% more annual revenue ($37.73B vs $1.31B). OTTR leads profitability with a 21.3% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. OTTR earns a higher WallStSmart Score of 67/100 (B-).
LAD
Buy55
out of 100
Grade: C
OTTR
Strong Buy67
out of 100
Grade: B-
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
-60.8%
Fair Value
$53.45
Current Price
$88.03
$34.58 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 21 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 24.7%
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
2.9% revenue growth
Distress zone — elevated risk
Weak financial health signals
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 : OTTR
The strongest argument for OTTR centers on Profit Margin, P/E Ratio, Price/Book. Profitability is solid with margins at 21.3% and operating margin at 24.7%.
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 : OTTR
The primary concerns for OTTR are PEG Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.28 — expect wider price swings.
OTTR is growing revenue faster at 2.9% — sustainability is the question.
OTTR generates stronger free cash flow (-115M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
OTTR scores higher overall (67/100 vs 55/100), backed by strong 21.3% margins. 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.
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.
Otter Tail Corporation
INDUSTRIALS · CONGLOMERATES · USA
Otter Tail Corporation is engaged in electrical service, manufacturing and plastic piping businesses in the United States. The company is headquartered in Fergus Falls, Minnesota.
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