Head-To-Head Comparison: Lithia Motors (LAD) vs. The Competition

Lithia Motors (NYSE: LAD) is one of 20 publicly-traded companies in the “Automotive dealers & gasoline service stations” industry, but how does it contrast to its competitors? We will compare Lithia Motors to related companies based on the strength of its risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Profitability

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This table compares Lithia Motors and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lithia Motors 2.43% 20.81% 5.01%
Lithia Motors Competitors 3.22% 33.52% 3.60%

Institutional & Insider Ownership

64.7% of shares of all “Automotive dealers & gasoline service stations” companies are held by institutional investors. 6.0% of Lithia Motors shares are held by company insiders. Comparatively, 17.0% of shares of all “Automotive dealers & gasoline service stations” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Lithia Motors and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Lithia Motors $10.09 billion $245.21 million 12.04
Lithia Motors Competitors $8.01 billion $218.36 million 12.43

Lithia Motors has higher revenue and earnings than its competitors. Lithia Motors is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lithia Motors and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lithia Motors 0 3 5 0 2.63
Lithia Motors Competitors 116 608 661 28 2.43

Lithia Motors presently has a consensus target price of $127.67, indicating a potential upside of 26.42%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 17.32%. Given Lithia Motors’ stronger consensus rating and higher probable upside, analysts clearly believe Lithia Motors is more favorable than its competitors.

Dividends

Lithia Motors pays an annual dividend of $1.08 per share and has a dividend yield of 1.1%. Lithia Motors pays out 12.9% of its earnings in the form of a dividend. As a group, “Automotive dealers & gasoline service stations” companies pay a dividend yield of 1.6% and pay out 20.5% of their earnings in the form of a dividend. Lithia Motors has increased its dividend for 7 consecutive years.

Risk & Volatility

Lithia Motors has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500. Comparatively, Lithia Motors’ competitors have a beta of 9.98, meaning that their average stock price is 898% more volatile than the S&P 500.

Summary

Lithia Motors competitors beat Lithia Motors on 8 of the 15 factors compared.

Lithia Motors Company Profile

Lithia Motors, Inc. is an operator of automotive franchises and a retailer of new and used vehicles and related services. As of February 28, 2017, it offered 30 brands of new vehicles and all brands of used vehicles in 154 stores in the United States and online at Lithia.com, DCHauto.com and CarboneCars.com. It operates through three segments: Domestic, Import and Luxury. Its Domestic segment consists of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors and Ford. Its Import segment consists of retail automotive franchises that sell new vehicles manufactured primarily by Honda, Toyota, Subaru, Nissan and Volkswagen. Its Luxury segment consists of retail automotive franchises that sell new vehicles manufactured primarily by BMW, Mercedes-Benz and Lexus. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products.

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