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 $6.5B against $4.0B — 1.6× the size. Lithia Motors, Inc. trades at the lower P/E: 9.8× against 39.3×. 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%). Across the 21 metrics below, Lithia Motors, Inc. leads on 11 and Valvoline on 10.

Valuation

Metric LAD VVV Auto & Truck Dealerships median
P/E 9.79 39.33 15.92
P/S 0.18 2.05 0.27
P/B 1.03 9.65 2.00
Price to free cash flow n/m 29.72 10.69
EV/EBITDA 7.97 12.50 8.59
EV/Sales 0.42 2.82 0.68
Earnings yield 10.22% 2.54% 3.16%
Free cash flow yield (7.23%) 3.37% 2.80%

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% 1.18%
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% 0.75%
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% 3.12%
EPS growth (last fiscal year) 9.01% 1.86% 2.35%
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 0.80% — 1.03%
Payout ratio 0.08 — 0.24

Size

Metric LAD VVV Auto & Truck Dealerships median
Market cap 6.49b 4.03b 2.14b

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