WallStSmart

Lithia Motors Inc (LAD)vsWilliams Companies Inc (WMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lithia Motors Inc generates 212% more annual revenue ($37.73B vs $12.11B). WMB leads profitability with a 23.1% profit margin vs 1.9%. LAD appears more attractively valued with a PEG of 0.64. WMB earns a higher WallStSmart Score of 65/100 (C+).

LAD

Buy

55

out of 100

Grade: C

Growth: 4.7Profit: 5.0Value: 9.3Quality: 5.3
Piotroski: 2/9Altman Z: 2.55

WMB

Buy

65

out of 100

Grade: C+

Growth: 6.0Profit: 8.0Value: 4.3Quality: 3.3
Piotroski: 3/9Altman Z: 0.37
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LADUndervalued (+53.9%)

Margin of Safety

+53.9%

Fair Value

$694.31

Current Price

$293.99

$400.32 discount

UndervaluedFair: $694.31Overvalued

Intrinsic value data unavailable for WMB.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LAD3 strengths · Avg: 9.3/10
P/E RatioValuation
10.2x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

PEG RatioValuation
0.648/10

Growing faster than its price suggests

WMB4 strengths · Avg: 9.0/10
Operating MarginProfitability
33.6%10/10

Strong operational efficiency at 33.6%

Market CapQuality
$89.22B9/10

Large-cap with strong market position

Profit MarginProfitability
23.1%9/10

Keeps 23 of every $100 in revenue as profit

EPS GrowthGrowth
25.0%8/10

Earnings expanding 25.0% YoY

Areas to Watch

LAD4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

Operating MarginProfitability
3.6%3/10

Operating margin of 3.6%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

WMB4 concerns · Avg: 3.3/10
PEG RatioValuation
2.484/10

Expensive relative to growth rate

P/E RatioValuation
32.0x4/10

Premium valuation, high expectations priced in

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.372/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull 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 : WMB

The strongest argument for WMB centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 23.1% and operating margin at 33.6%.

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 : WMB

The primary concerns for WMB are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

LAD profiles as a value stock while WMB is a mature play — different risk/reward profiles.

LAD carries more volatility with a beta of 1.28 — expect wider price swings.

WMB is growing revenue faster at 9.0% — sustainability is the question.

WMB generates stronger free cash flow (244M), providing more financial flexibility.

Bottom Line

WMB scores higher overall (65/100 vs 55/100), backed by strong 23.1% margins. 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.

Williams Companies Inc

ENERGY · OIL & GAS MIDSTREAM · USA

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.

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