Lithia Motors Inc (LAD)vsSonic Automotive Inc (SAH)
LAD
Lithia Motors Inc
$308.77
-2.45%
CONSUMER CYCLICAL · Cap: $6.35B
SAH
Sonic Automotive Inc
$61.71
-1.74%
CONSUMER CYCLICAL · Cap: $2.01B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 147% more annual revenue ($38.21B vs $15.47B). LAD leads profitability with a 2.1% profit margin vs 1.4%. LAD appears more attractively valued with a PEG of 0.58. LAD earns a higher WallStSmart Score of 68/100 (B-).
LAD
Strong Buy68
out of 100
Grade: B-
SAH
Buy61
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+12.2%
Fair Value
$364.90
Current Price
$308.77
$56.13 discount
Margin of Safety
-21.6%
Fair Value
$50.03
Current Price
$61.71
$11.68 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Earnings expanding 53.5% YoY
Growing faster than its price suggests
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
2.8% revenue growth
2.1% margin — thin
Operating margin of 4.2%
Weak financial health signals
1.4% margin — thin
Operating margin of 3.4%
Earnings declined 12.3%
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, EPS Growth. PEG of 0.58 suggests the stock is reasonably priced for its growth.
Bull Case : SAH
The strongest argument for SAH centers on P/E Ratio, Altman Z-Score, PEG Ratio. PEG of 0.62 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 2.43 is elevated, increasing financial risk. Thin 2.1% margins leave little buffer for downturns.
Bear Case : SAH
The primary concerns for SAH are Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.45 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.26 — expect wider price swings.
SAH is growing revenue faster at 7.6% — sustainability is the question.
SAH generates stronger free cash flow (-14M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (68/100 vs 61/100). 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.
Sonic Automotive Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.
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