AutoNation, Inc. (AN) vs Lithia Motors, Inc. (LAD)

AutoNation, Inc. and Lithia Motors, Inc. are both Auto & Truck Dealerships companies. Lithia Motors, Inc. is the larger, with a market value of $6.5B against $5.3B — 1.2× the size. AutoNation, Inc. trades at the lower P/E: 7.5× against 9.8×. Lithia Motors, Inc. grew revenue faster over the last twelve months: 2.10% against −0.06%. AutoNation, Inc. has the higher net margin (2.82% vs 1.88%) and the higher return on invested capital (9.19% vs 6.20%). Across the 21 metrics below, AutoNation, Inc. leads on 12 and Lithia Motors, Inc. on 9.

Valuation

Metric AN LAD Auto & Truck Dealerships median
P/E 7.49 9.79 15.92
P/S 0.20 0.18 0.27
P/B 2.40 1.03 2.00
Price to free cash flow 447.76 n/m 10.69
EV/EBITDA 7.67 7.97 8.59
EV/Sales 0.44 0.42 0.68
Earnings yield 13.35% 10.22% 3.16%
Free cash flow yield 0.22% (7.23%) 2.80%

Profitability

Metric AN LAD Auto & Truck Dealerships median
Gross margin 17.83% 15.17% 19.56%
Operating margin 4.81% 4.08% 3.73%
Net margin 2.82% 1.88% 1.18%
Free cash flow margin 0.04% (1.26%) 2.34%
Return on equity 32.77% 10.63% 10.04%
Return on assets 5.33% 2.83% 0.75%
Return on invested capital 9.19% 6.20% 6.85%

Growth

Metric AN LAD Auto & Truck Dealerships median
Revenue growth (TTM) (0.06%) 2.10% 3.12%
EPS growth (last fiscal year) 0.71% 9.01% 2.35%
Revenue growth, 5-year CAGR 6.27% 23.45% 10.46%
Net income growth, 5-year CAGR 11.21% 11.75% 0.00%

Health

Metric AN LAD Auto & Truck Dealerships median
Debt to equity 3.00 1.48 0.55
Current ratio 0.78 1.00 1.15
Net debt to EBITDA 3.70 4.71 1.34

Dividend

Metric AN LAD Auto & Truck Dealerships median
Dividend yield — 0.80% 1.03%
Payout ratio — 0.08 0.24

Size

Metric AN LAD Auto & Truck Dealerships median
Market cap 5.28b 6.49b 2.14b

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