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 $4.6B — 1.5× the size. Lithia Motors, Inc. trades at the lower P/E: 9.1× against 44.7×. Valvoline grew revenue faster over the last twelve months: 16.1% against 1.59%. Valvoline has the higher net margin (5.17% vs 2.06%) and the higher return on invested capital (9.72% vs 6.05%). 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 9.10 44.66 15.49
P/S 0.18 2.33 0.24
P/B 1.04 10.96 1.45
Price to free cash flow n/m 33.75 10.17
EV/EBITDA 8.15 13.73 8.57
EV/Sales 0.43 3.10 0.47
Earnings yield 10.99% 2.24% 2.96%
Free cash flow yield (5.81%) 2.96% 2.14%

Profitability

Metric LAD VVV Auto & Truck Dealerships median
Gross margin 15.14% 38.28% 18.39%
Operating margin 4.05% 15.33% 3.69%
Net margin 2.06% 5.17% 1.20%
Free cash flow margin (1.05%) 6.89% 0.86%
Return on equity 11.74% 27.80% 11.73%
Return on assets 3.07% 3.36% 0.75%
Return on invested capital 6.05% 9.72% 6.38%

Growth

Metric LAD VVV Auto & Truck Dealerships median
Revenue growth (TTM) 1.59% 16.08% 0.29%
EPS growth (last fiscal year) 9.01% 1.86% (0.89%)
Revenue growth, 5-year CAGR 23.45% 18.66% 9.44%
Net income growth, 5-year CAGR 11.75% (7.82%) 0.00%

Health

Metric LAD VVV Auto & Truck Dealerships median
Debt to equity 1.46 3.84 0.61
Current ratio 1.00 0.70 1.16
Net debt to EBITDA 4.71 2.01 1.24

Dividend

Metric LAD VVV Auto & Truck Dealerships median
Dividend yield 0.99% — 1.02%
Payout ratio 0.09 — 0.24

Size

Metric LAD VVV Auto & Truck Dealerships median
Market cap 6.84b 4.57b 2.03b

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