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 $6.8B against $6.0B — 1.1× the size. AutoNation, Inc. trades at the lower P/E: 9.0× against 9.1×. Lithia Motors, Inc. grew revenue faster over the last twelve months: 1.59% against −1.77%. AutoNation, Inc. has the higher net margin (2.63% vs 2.06%) and the higher return on invested capital (8.69% vs 6.05%). Across the 21 metrics below, AutoNation, Inc. leads on 11 and Lithia Motors, Inc. on 10.

Valuation

Metric AN LAD Auto & Truck Dealerships median
P/E 9.00 9.10 15.49
P/S 0.23 0.18 0.24
P/B 2.73 1.04 1.45
Price to free cash flow 269.88 n/m 10.17
EV/EBITDA 8.52 8.15 8.57
EV/Sales 0.47 0.43 0.47
Earnings yield 11.11% 10.99% 2.96%
Free cash flow yield 0.37% (5.81%) 2.14%

Profitability

Metric AN LAD Auto & Truck Dealerships median
Gross margin 17.74% 15.14% 18.39%
Operating margin 4.60% 4.05% 3.69%
Net margin 2.63% 2.06% 1.20%
Free cash flow margin 0.08% (1.05%) 0.86%
Return on equity 30.22% 11.74% 11.73%
Return on assets 4.84% 3.07% 0.75%
Return on invested capital 8.69% 6.05% 6.38%

Growth

Metric AN LAD Auto & Truck Dealerships median
Revenue growth (TTM) (1.77%) 1.59% 0.29%
EPS growth (last fiscal year) 0.71% 9.01% (0.89%)
Revenue growth, 5-year CAGR 6.27% 23.45% 9.44%
Net income growth, 5-year CAGR 11.21% 11.75% 0.00%

Health

Metric AN LAD Auto & Truck Dealerships median
Debt to equity 3.03 1.46 0.61
Current ratio 0.77 1.00 1.16
Net debt to EBITDA 3.70 4.71 1.24

Dividend

Metric AN LAD Auto & Truck Dealerships median
Dividend yield — 0.99% 1.02%
Payout ratio — 0.09 0.24

Size

Metric AN LAD Auto & Truck Dealerships median
Market cap 6.02b 6.84b 2.03b

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