Lithia Motors, Inc. (LAD) vs Valvoline (VVV)

Lithia Motors, Inc. and Valvoline are both Auto & Truck Dealerships companies. Lithia Motors, Inc. is the larger, with a market value of $6.8B against $3.6B — 1.9× the size. Lithia Motors, Inc. trades at the lower P/E: 10.5× against 36.2×. Valvoline grew revenue faster over the last twelve months: 16.1% against 2.10%. Valvoline has the higher net margin (5.17% vs 1.88%) and the higher return on invested capital (9.72% vs 6.20%). Both pay a dividend; Valvoline yields more (1.55% vs 0.66%). Across the 22 metrics below, Lithia Motors, Inc. leads on 11 and Valvoline on 11.

Valuation

Metric LAD VVV Auto & Truck Dealerships median
P/E 10.49 36.15 16.07
P/S 0.19 1.88 0.43
P/B 1.11 8.87 2.36
Price to free cash flow n/m 27.32 10.48
EV/EBITDA 8.22 11.77 8.50
EV/Sales 0.43 2.65 0.89
Earnings yield 9.53% 2.77% 2.72%
Free cash flow yield (6.74%) 3.66% 2.83%

Profitability

Metric LAD VVV Auto & Truck Dealerships median
Gross margin 15.17% 38.28% 19.56%
Operating margin 4.08% 15.33% 3.73%
Net margin 1.88% 5.17% 1.07%
Free cash flow margin (1.26%) 6.89% 2.34%
Return on equity 10.63% 27.80% 10.04%
Return on assets 2.83% 3.36% 0.61%
Return on invested capital 6.20% 9.72% 6.85%

Growth

Metric LAD VVV Auto & Truck Dealerships median
Revenue growth (TTM) 2.10% 16.08% 1.46%
EPS growth (last fiscal year) 9.01% 1.86% —
Revenue growth, 5-year CAGR 23.45% 18.66% 10.46%
Net income growth, 5-year CAGR 11.75% (7.82%) 0.00%

Health

Metric LAD VVV Auto & Truck Dealerships median
Debt to equity 1.48 3.84 0.55
Current ratio 1.00 0.70 1.15
Net debt to EBITDA 4.71 2.01 1.34

Dividend

Metric LAD VVV Auto & Truck Dealerships median
Dividend yield 0.66% 1.55% 1.37%
Payout ratio 0.04 0.31 0.00

Size

Metric LAD VVV Auto & Truck Dealerships median
Market cap 6.81b 3.62b 2.10b

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