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 $5.4B — 1.3× the size. AutoNation, Inc. trades at the lower P/E: 7.7× against 10.5×. 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 7.73 10.49 16.07
P/S 0.20 0.19 0.43
P/B 2.48 1.11 2.36
Price to free cash flow 462.30 n/m 10.48
EV/EBITDA 7.78 8.22 8.50
EV/Sales 0.45 0.43 0.89
Earnings yield 12.93% 9.53% 2.72%
Free cash flow yield 0.22% (6.74%) 2.83%

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% 1.07%
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% 0.61%
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% 1.46%
EPS growth (last fiscal year) 0.71% 9.01% —
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 — 0.66% 1.37%
Payout ratio 0.00 0.04 0.00

Size

Metric AN LAD Auto & Truck Dealerships median
Market cap 5.39b 6.81b 2.10b

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