Lithia Motors Inc (LAD)vsThe TJX Companies Inc (TJX)
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
TJX
The TJX Companies Inc
$153.36
-0.73%
CONSUMER CYCLICAL · Cap: $169.59B
Smart Verdict
WallStSmart Research — data-driven comparison
The TJX Companies Inc generates 60% more annual revenue ($60.37B vs $37.73B). TJX leads profitability with a 9.1% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. TJX earns a higher WallStSmart Score of 56/100 (C).
LAD
Buy55
out of 100
Grade: C
TJX
Buy56
out of 100
Grade: C
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
-6.9%
Fair Value
$147.44
Current Price
$153.36
$5.92 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
Every $100 of equity generates 59 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Earnings expanding 27.9% YoY
Generating 2.6B in free cash flow
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
Trading at 16.7x book value
Expensive relative to growth rate
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 : TJX
The strongest argument for TJX centers on Return on Equity, Altman Z-Score, Market Cap.
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 : TJX
The primary concerns for TJX are P/E Ratio, Price/Book, PEG Ratio.
Key Dynamics to Monitor
LAD carries more volatility with a beta of 1.28 — expect wider price swings.
TJX is growing revenue faster at 8.5% — sustainability is the question.
TJX generates stronger free cash flow (2.6B), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TJX scores higher overall (56/100 vs 55/100). LAD offers better value entry with a 53.9% margin of safety. 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.
The TJX Companies Inc
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.
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