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 $13.9B against $6.8B — 2.0× the size. Lithia Motors, Inc. trades at the lower P/E: 9.1× against 15.5×. Lithia Motors, Inc. grew revenue faster over the last twelve months: 1.59% against 1.38%. Penske Automotive Group, Inc. has the higher net margin (2.77% vs 2.06%) and the higher return on invested capital (9.11% vs 6.05%). Both pay a dividend; Penske Automotive Group, Inc. yields more (2.66% vs 0.99%). 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 9.10 15.49 15.49
P/S 0.18 0.43 0.24
P/B 1.04 2.34 1.45
Price to free cash flow n/m 26.34 10.17
EV/EBITDA 8.15 11.73 8.57
EV/Sales 0.43 0.50 0.47
Earnings yield 10.99% 6.46% 2.96%
Free cash flow yield (5.81%) 3.80% 2.14%

Profitability

Metric LAD PAG Auto & Truck Dealerships median
Gross margin 15.14% 16.04% 18.39%
Operating margin 4.05% 3.70% 3.69%
Net margin 2.06% 2.77% 1.20%
Free cash flow margin (1.05%) 1.63% 0.86%
Return on equity 11.74% 15.44% 11.73%
Return on assets 3.07% 5.08% 0.75%
Return on invested capital 6.05% 9.11% 6.38%

Growth

Metric LAD PAG Auto & Truck Dealerships median
Revenue growth (TTM) 1.59% 1.38% 0.29%
EPS growth (last fiscal year) 9.01% (2.48%) (0.89%)
Revenue growth, 5-year CAGR 23.45% 9.24% 9.44%
Net income growth, 5-year CAGR 11.75% 11.47% 0.00%

Health

Metric LAD PAG Auto & Truck Dealerships median
Debt to equity 1.46 0.40 0.61
Current ratio 1.00 0.98 1.16
Net debt to EBITDA 4.71 1.45 1.24

Dividend

Metric LAD PAG Auto & Truck Dealerships median
Dividend yield 0.99% 2.66% 1.02%
Payout ratio 0.09 0.41 0.24

Size

Metric LAD PAG Auto & Truck Dealerships median
Market cap 6.84b 13.93b 2.03b

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