Lithia Motors Inc (LAD)vsSociedad Quimica y Minera de Chile SA ADR B (SQM)
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
SQM
Sociedad Quimica y Minera de Chile SA ADR B
$91.60
-1.99%
BASIC MATERIALS · Cap: $26.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Lithia Motors Inc generates 724% more annual revenue ($37.73B vs $4.58B). SQM leads profitability with a 12.9% profit margin vs 1.9%. SQM appears more attractively valued with a PEG of 0.60. SQM earns a higher WallStSmart Score of 66/100 (B-).
LAD
Buy55
out of 100
Grade: C
SQM
Strong Buy66
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
+9.0%
Fair Value
$82.67
Current Price
$91.60
$8.93 discount
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
Earnings expanding 52.3% YoY
Growing faster than its price suggests
Strong operational efficiency at 28.3%
Revenue surging 23.3% year-over-year
Areas to Watch
1.0% revenue growth
1.9% margin — thin
Operating margin of 3.6%
Weak financial health signals
Premium valuation, high expectations priced in
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 : SQM
The strongest argument for SQM centers on EPS Growth, PEG Ratio, Operating Margin. Revenue growth of 23.3% demonstrates continued momentum. PEG of 0.60 suggests the stock is reasonably priced for its growth.
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 : SQM
The primary concerns for SQM are P/E Ratio. A P/E of 44.5x leaves little room for execution misses.
Key Dynamics to Monitor
LAD profiles as a value stock while SQM is a growth play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.28 — expect wider price swings.
SQM is growing revenue faster at 23.3% — sustainability is the question.
SQM generates stronger free cash flow (317M), providing more financial flexibility.
Bottom Line
SQM scores higher overall (66/100 vs 55/100) and 23.3% revenue growth. 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.
Sociedad Quimica y Minera de Chile SA ADR B
BASIC MATERIALS · SPECIALTY CHEMICALS · USA
Sociedad Qumica y Minera de Chile SA produces and distributes specialty plant nutrients, iodine and its derivatives, lithium and its derivatives, potassium chloride and sulfate, industrial chemicals and other products and services worldwide. The company is headquartered in Santiago, Chile.
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