WallStSmart

Sonic Automotive Inc (SAH)vsSea Ltd (SE)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Sea Ltd generates 79% more annual revenue ($27.72B vs $15.47B). SE leads profitability with a 5.9% profit margin vs 1.4%. SAH appears more attractively valued with a PEG of 0.73. SAH earns a higher WallStSmart Score of 59/100 (C).

SAH

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 5.0Value: 6.0Quality: 5.5
Piotroski: 4/9Altman Z: 3.26

SE

Buy

56

out of 100

Grade: C

Growth: 8.7Profit: 5.5Value: 6.7Quality: 6.5
Piotroski: 6/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SAHSignificantly Overvalued (-23.4%)

Margin of Safety

-23.4%

Fair Value

$49.30

Current Price

$65.34

$16.04 premium

UndervaluedFair: $49.30Overvalued
SEUndervalued (+55.9%)

Margin of Safety

+55.9%

Fair Value

$259.48

Current Price

$103.67

$155.81 discount

UndervaluedFair: $259.48Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SAH4 strengths · Avg: 8.5/10
Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.738/10

Growing faster than its price suggests

P/E RatioValuation
12.1x8/10

Attractively priced relative to earnings

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

SE3 strengths · Avg: 9.0/10
Revenue GrowthGrowth
48.1%10/10

Revenue surging 48.1% year-over-year

Market CapQuality
$65.07B9/10

Large-cap with strong market position

Free Cash FlowQuality
$1.15B8/10

Generating 1.1B in free cash flow

Areas to Watch

SAH4 concerns · Avg: 2.5/10
Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

EPS GrowthGrowth
-12.3%2/10

Earnings declined 12.3%

Free Cash FlowQuality
$-217.70M2/10

Negative free cash flow — burning cash

SE3 concerns · Avg: 3.0/10
Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

Profit MarginProfitability
5.9%3/10

5.9% margin — thin

P/E RatioValuation
41.5x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : SAH

The strongest argument for SAH centers on Altman Z-Score, PEG Ratio, P/E Ratio. PEG of 0.73 suggests the stock is reasonably priced for its growth.

Bull Case : SE

The strongest argument for SE centers on Revenue Growth, Market Cap, Free Cash Flow. Revenue growth of 48.1% demonstrates continued momentum. PEG of 1.04 suggests the stock is reasonably priced for its growth.

Bear Case : SAH

The primary concerns for SAH are Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.56 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.

Bear Case : SE

The primary concerns for SE are Altman Z-Score, Profit Margin, P/E Ratio. A P/E of 41.5x leaves little room for execution misses.

Key Dynamics to Monitor

SAH profiles as a value stock while SE is a hypergrowth play — different risk/reward profiles.

SE carries more volatility with a beta of 1.52 — expect wider price swings.

SE is growing revenue faster at 48.1% — sustainability is the question.

SE generates stronger free cash flow (1.1B), providing more financial flexibility.

Bottom Line

SAH scores higher overall (59/100 vs 56/100). SE offers better value entry with a 55.9% 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.

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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Sea Ltd

CONSUMER CYCLICAL · INTERNET RETAIL · USA

Sea Limited is engaged in the digital entertainment, e-commerce and digital financial services businesses in Southeast Asia, Latin America, the rest of Asia and internationally. The company is headquartered in Singapore.

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