WallStSmart

Lithia Motors Inc (LAD)vsParker-Hannifin Corporation (PH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lithia Motors Inc generates 80% more annual revenue ($37.73B vs $20.99B). PH leads profitability with a 16.6% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. PH earns a higher WallStSmart Score of 55/100 (C-).

LAD

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 9.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.55

PH

Buy

55

out of 100

Grade: C-

Growth: 4.7Profit: 8.0Value: 3.7Quality: 5.8
Piotroski: 5/9Altman Z: 2.78
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LADUndervalued (+53.9%)

Margin of Safety

+53.9%

Fair Value

$694.31

Current Price

$293.99

$400.32 discount

UndervaluedFair: $694.31Overvalued

Intrinsic value data unavailable for PH.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LAD3 strengths · Avg: 9.3/10
P/E RatioValuation
10.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.648/10

Growing faster than its price suggests

PH3 strengths · Avg: 8.7/10
Market CapQuality
$111.82B9/10

Large-cap with strong market position

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Operating MarginProfitability
21.5%8/10

Strong operational efficiency at 21.5%

Areas to Watch

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PH3 concerns · Avg: 2.7/10
P/E RatioValuation
32.7x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
3.542/10

Expensive relative to growth rate

EPS GrowthGrowth
-4.2%2/10

Earnings declined 4.2%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : PH

The strongest argument for PH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 16.6% and operating margin at 21.5%. Revenue growth of 10.6% demonstrates continued momentum.

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 : PH

The primary concerns for PH are P/E Ratio, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

LAD profiles as a value stock while PH is a mature play — different risk/reward profiles.

LAD carries more volatility with a beta of 1.28 — expect wider price swings.

PH is growing revenue faster at 10.6% — sustainability is the question.

PH generates stronger free cash flow (881M), providing more financial flexibility.

Bottom Line

LAD scores higher overall (55/100 vs 55/100). 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.

Parker-Hannifin Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.

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