Lithia Motors Inc (LAD)vsSonic Automotive Inc (SAH)
LAD
Lithia Motors Inc
$288.84
-0.61%
CONSUMER CYCLICAL · Cap: $7.15B
SAH
Sonic Automotive Inc
$80.58
-2.56%
CONSUMER CYCLICAL · Cap: $2.67B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 148% more annual revenue ($37.73B vs $15.19B). LAD leads profitability with a 1.9% profit margin vs 0.7%. SAH appears more attractively valued with a PEG of 0.41. LAD earns a higher WallStSmart Score of 55/100 (C).
LAD
Buy55
out of 100
Grade: C
SAH
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+8.5%
Fair Value
$350.34
Current Price
$288.84
$61.50 discount
Margin of Safety
-32.0%
Fair Value
$46.08
Current Price
$80.58
$34.50 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
Growing faster than its price suggests
Safe zone — low bankruptcy risk
Reasonable price relative to book value
Areas to Watch
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
Moderate valuation
1.0% revenue growth
0.7% margin — thin
Operating margin of 3.5%
Comparative Analysis Report
WallStSmart ResearchBull Case : LAD
The strongest argument for LAD centers on P/E Ratio, Price/Book, PEG Ratio. PEG of 0.70 suggests the stock is reasonably priced for its growth.
Bull Case : SAH
The strongest argument for SAH centers on PEG Ratio, Altman Z-Score, Price/Book. PEG of 0.41 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 2.53 is elevated, increasing financial risk. Thin 1.9% margins leave little buffer for downturns.
Bear Case : SAH
The primary concerns for SAH are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 4.51 is elevated, increasing financial risk. Thin 0.7% 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 1.0% — sustainability is the question.
SAH generates stronger free cash flow (-2M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LAD scores higher overall (55/100 vs 53/100). 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.
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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