Lithia Motors Inc (LAD)vsTaiwan Semiconductor Manufacturing (TSM)
LAD
Lithia Motors Inc
$293.99
+0.99%
CONSUMER CYCLICAL · Cap: $6.64B
TSM
Taiwan Semiconductor Manufacturing
$411.68
-0.60%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 10778% more annual revenue ($4.10T vs $37.73B). TSM leads profitability with a 46.5% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. TSM earns a higher WallStSmart Score of 84/100 (A-).
LAD
Buy55
out of 100
Grade: C
TSM
Exceptional Buy84
out of 100
Grade: A-
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
+72.3%
Fair Value
$1394.10
Current Price
$411.68
$982.42 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
Mega-cap, among the largest globally
Every $100 of equity generates 36 in profit
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Revenue surging 35.1% year-over-year
Earnings expanding 58.4% YoY
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 62.9x book value
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 : TSM
The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 46.5% and operating margin at 58.1%. Revenue growth of 35.1% 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 : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
LAD profiles as a value stock while TSM is a growth play — different risk/reward profiles.
LAD carries more volatility with a beta of 1.28 — expect wider price swings.
TSM is growing revenue faster at 35.1% — sustainability is the question.
TSM generates stronger free cash flow (377.1B), providing more financial flexibility.
Bottom Line
TSM scores higher overall (84/100 vs 55/100), backed by strong 46.5% margins and 35.1% revenue growth. LAD offers better value entry with a 53.9% margin of safety. Both earn "Exceptional 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.
Taiwan Semiconductor Manufacturing
TECHNOLOGY · SEMICONDUCTORS · USA
Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies, the world's most valuable semiconductor company, and the world's largest dedicated independent (pure-play) semiconductor foundry, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors.
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