Lithia Motors Inc (LAD)vsPenske Automotive Group Inc (PAG)
LAD
Lithia Motors Inc
$243.00
-2.14%
CONSUMER CYCLICAL · Cap: $5.68B
PAG
Penske Automotive Group Inc
$140.60
-2.57%
CONSUMER CYCLICAL · Cap: $9.26B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 18% more annual revenue ($37.63B vs $31.81B). PAG leads profitability with a 2.9% profit margin vs 2.2%. LAD appears more attractively valued with a PEG of 0.44. LAD earns a higher WallStSmart Score of 58/100 (C).
LAD
Buy58
out of 100
Grade: C
PAG
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-45.8%
Fair Value
$219.78
Current Price
$243.00
$23.22 premium
Margin of Safety
-85.1%
Fair Value
$93.57
Current Price
$140.60
$47.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 30.0% year-over-year
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
2.2% margin — thin
Operating margin of 3.9%
Weak financial health signals
Earnings declined 28.4%
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.4%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : LAD
The strongest argument for LAD centers on PEG Ratio, P/E Ratio, Price/Book. Revenue growth of 30.0% demonstrates continued momentum. PEG of 0.44 suggests the stock is reasonably priced for its growth.
Bull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bear Case : LAD
The primary concerns for LAD are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.2% margins leave little buffer for downturns.
Bear Case : PAG
The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD profiles as a growth stock while PAG is a value play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.20 — expect wider price swings.
LAD is growing revenue faster at 30.0% — sustainability is the question.
LAD generates stronger free cash flow (66M), providing more financial flexibility.
Bottom Line
LAD scores higher overall (58/100 vs 51/100) and 30.0% revenue growth. 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.
Penske Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.
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