Lithia Motors, Inc. (LAD) vs Penske Automotive Group, Inc. (PAG)

Lithia Motors, Inc. and Penske Automotive Group, Inc. are both Auto & Truck Dealerships companies. Penske Automotive Group, Inc. is the larger, with a market value of $13.7B against $6.8B — 2.0× the size. Lithia Motors, Inc. trades at the lower P/E: 10.5× against 15.4×. Lithia Motors, Inc. grew revenue faster over the last twelve months: 2.10% against −1.55%. Penske Automotive Group, Inc. has the higher net margin (2.81% vs 1.88%) and the higher return on invested capital (9.18% vs 6.20%). Both pay a dividend; Penske Automotive Group, Inc. yields more (1.66% vs 0.66%). Across the 22 metrics below, Lithia Motors, Inc. leads on 12 and Penske Automotive Group, Inc. on 10.

Valuation

Metric LAD PAG Auto & Truck Dealerships median
P/E 10.49 15.44 16.07
P/S 0.19 0.43 0.43
P/B 1.11 2.36 2.36
Price to free cash flow n/m 22.10 10.48
EV/EBITDA 8.22 11.64 8.50
EV/Sales 0.43 0.50 0.89
Earnings yield 9.53% 6.48% 2.72%
Free cash flow yield (6.74%) 4.53% 2.83%

Profitability

Metric LAD PAG Auto & Truck Dealerships median
Gross margin 15.17% 16.15% 19.56%
Operating margin 4.08% 3.77% 3.73%
Net margin 1.88% 2.81% 1.07%
Free cash flow margin (1.26%) 1.94% 2.34%
Return on equity 10.63% 15.80% 10.04%
Return on assets 2.83% 5.05% 0.61%
Return on invested capital 6.20% 9.18% 6.85%

Growth

Metric LAD PAG Auto & Truck Dealerships median
Revenue growth (TTM) 2.10% (1.55%) 1.46%
EPS growth (last fiscal year) 9.01% 2.84% —
Revenue growth, 5-year CAGR 23.45% 9.24% 10.46%
Net income growth, 5-year CAGR 11.75% 11.47% 0.00%

Health

Metric LAD PAG Auto & Truck Dealerships median
Debt to equity 1.48 0.43 0.55
Current ratio 1.00 0.98 1.15
Net debt to EBITDA 4.71 1.45 1.34

Dividend

Metric LAD PAG Auto & Truck Dealerships median
Dividend yield 0.66% 1.66% 1.37%
Payout ratio 0.04 0.13 0.00

Size

Metric LAD PAG Auto & Truck Dealerships median
Market cap 6.81b 13.66b 2.10b

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