Lithia Motors (LAD) Competitors

CarMax (NYSE:KMX) and Lithia Motors (NYSE:LAD) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, media sentiment, dividends, institutional ownership, analyst recommendations, valuation, earnings, risk and community ranking.

Is KMX or LAD more profitable?

Lithia Motors has a net margin of 2.87% compared to Lithia Motors' net margin of 1.55%. CarMax's return on equity of 15.62% beat Lithia Motors' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
CarMax	1.55%	6.64%	1.48%
Lithia Motors	2.87%	15.62%	4.90%

Does the MarketBeat Community believe in KMX or LAD?

CarMax received 209 more outperform votes than Lithia Motors when rated by MarketBeat users. However, 67.22% of users gave Lithia Motors an outperform vote while only 63.57% of users gave CarMax an outperform vote.

Company	Underperform	Outperform
CarMax	Outperform Votes 691 63.57%	Underperform Votes 396 36.43%
Lithia Motors	Outperform Votes 482 67.22%	Underperform Votes 235 32.78%

Which has more volatility & risk, KMX or LAD?

CarMax has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Lithia Motors has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500.

Do analysts rate KMX or LAD?

CarMax presently has a consensus target price of $76.25, suggesting a potential downside of 7.83%. Lithia Motors has a consensus target price of $314.45, suggesting a potential upside of 20.79%. Given CarMax's stronger consensus rating and higher probable upside, analysts clearly believe Lithia Motors is more favorable than CarMax.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CarMax	2 Sell rating(s)	5 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.31
Lithia Motors	1 Sell rating(s)	4 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.40

Which has higher valuation & earnings, KMX or LAD?

Lithia Motors has higher revenue and earnings than CarMax. Lithia Motors is trading at a lower price-to-earnings ratio than CarMax, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CarMax	$26.54B	0.49	$479.20M	$2.56	32.35
Lithia Motors	$31.04B	0.23	$1.00B	$33.87	7.74

Does the media prefer KMX or LAD?

In the previous week, Lithia Motors had 7 more articles in the media than CarMax. MarketBeat recorded 19 mentions for Lithia Motors and 12 mentions for CarMax. Lithia Motors' average media sentiment score of 0.79 beat CarMax's score of 0.17 indicating that CarMax is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
CarMax	6 Very Positive mention(s)	2 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Lithia Motors	5 Very Positive mention(s)	2 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Summary

Lithia Motors beats CarMax on 10 of the 16 factors compared between the two stocks.