Lithia Motors, Inc. (LAD) vs OPENLANE, Inc. (OPLN)

Lithia Motors, Inc. and OPENLANE, Inc. are both Auto & Truck Dealerships companies. Lithia Motors, Inc. is the larger, with a market value of $6.8B against $4.2B — 1.6× the size. OPENLANE, Inc. has negative trailing earnings, so its P/E is not meaningful; Lithia Motors, Inc. trades at 10.5×. OPENLANE, Inc. grew revenue faster over the last twelve months: 11.8% against 2.10%. Lithia Motors, Inc. has the higher net margin (1.88% vs −3.08%) and the lower return on invested capital (6.20% vs 7.90%). Across the 20 metrics below, Lithia Motors, Inc. leads on 11 and OPENLANE, Inc. on 9.

Valuation

Metric LAD OPLN Auto & Truck Dealerships median
P/E 10.49 n/m 16.07
P/S 0.19 1.92 0.43
P/B 1.11 2.54 2.36
Price to free cash flow n/m 11.29 10.48
EV/EBITDA 8.22 9.68 8.50
EV/Sales 0.43 2.08 0.89
Earnings yield 9.53% (2.38%) 2.72%
Free cash flow yield (6.74%) 8.86% 2.83%

Profitability

Metric LAD OPLN Auto & Truck Dealerships median
Gross margin 15.17% 45.85% 19.56%
Operating margin 4.08% 16.61% 3.73%
Net margin 1.88% (3.08%) 1.07%
Free cash flow margin (1.26%) 17.05% 2.34%
Return on equity 10.63% (4.29%) 10.04%
Return on assets 2.83% (1.33%) 0.61%
Return on invested capital 6.20% 7.90% 6.85%

Growth

Metric LAD OPLN Auto & Truck Dealerships median
Revenue growth (TTM) 2.10% 11.77% 1.46%
EPS growth (last fiscal year) 9.01% (313.33%) —
Revenue growth, 5-year CAGR 23.45% 7.83% 10.46%
Net income growth, 5-year CAGR 11.75% 0.00% 0.00%

Health

Metric LAD OPLN Auto & Truck Dealerships median
Debt to equity 1.48 0.34 0.55
Current ratio 1.00 1.17 1.15
Net debt to EBITDA 4.71 0.86 1.34

Dividend

Metric LAD OPLN Auto & Truck Dealerships median
Dividend yield 0.66% — 1.37%
Payout ratio 0.04 0.00 0.00

Size

Metric LAD OPLN Auto & Truck Dealerships median
Market cap 6.81b 4.24b 2.10b

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