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SAH vs LAD
Revenue, margins, valuation, and 5-year total return — side by side.
Auto - Dealerships
SAH vs LAD — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Auto - Dealerships | Auto - Dealerships |
| Market Cap | $2.73B | $6.64B |
| Revenue (TTM) | $15.15B | $37.73B |
| Net Income (TTM) | $119M | $711M |
| Gross Margin | 14.6% | 15.2% |
| Operating Margin | 3.6% | 3.7% |
| Forward P/E | 12.4x | 8.5x |
| Total Debt | $4.23B | $14.69B |
| Cash & Equiv. | $6M | $342M |
SAH vs LAD — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Sonic Automotive, I… (SAH) | 100 | 305.2 | +205.2% |
| Lithia Motors, Inc. (LAD) | 100 | 241.5 | +141.5% |
Price return only. Dividends and distributions are not included.
Quick Verdict: SAH vs LAD
Each card shows where this stock fits in a portfolio — not just who wins on paper.
SAH carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 10 yrs, beta 1.05, yield 1.8%
- Rev growth 6.5%, EPS growth -44.7%, 3Y rev CAGR 2.7%
- 392.8% 10Y total return vs LAD's 264.5%
LAD is the clearest fit if your priority is value and quality.
- Lower P/E (8.5x vs 12.4x)
- 1.9% margin vs SAH's 0.8%
- 2.9% ROA vs SAH's 2.0%, ROIC 5.2% vs 7.8%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 6.5% revenue growth vs LAD's 4.0% | |
| Value | Lower P/E (8.5x vs 12.4x) | |
| Quality / Margins | 1.9% margin vs SAH's 0.8% | |
| Stability / Safety | Beta 1.05 vs LAD's 1.09 | |
| Dividends | 1.8% yield, 10-year raise streak, vs LAD's 0.7% | |
| Momentum (1Y) | +29.4% vs LAD's -0.8% | |
| Efficiency (ROA) | 2.9% ROA vs SAH's 2.0%, ROIC 5.2% vs 7.8% |
SAH vs LAD — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
SAH vs LAD — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
LAD leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
LAD is the larger business by revenue, generating $37.7B annually — 2.5x SAH's $15.2B. Profitability is closely matched — net margins range from 1.9% (LAD) to 0.8% (SAH).
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $15.2B | $37.7B |
| EBITDAEarnings before interest/tax | $705M | $1.8B |
| Net IncomeAfter-tax profit | $119M | $711M |
| Free Cash FlowCash after capex | $425M | $1.9B |
| Gross MarginGross profit ÷ Revenue | +14.6% | +15.2% |
| Operating MarginEBIT ÷ Revenue | +3.6% | +3.7% |
| Net MarginNet income ÷ Revenue | +0.8% | +1.9% |
| FCF MarginFCF ÷ Revenue | +2.8% | +5.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | -0.6% | +1.0% |
| EPS Growth (YoY)Latest quarter vs prior year | -18.6% | -46.1% |
Valuation Metrics
LAD leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 9.0x trailing earnings, LAD trades at a 62% valuation discount to SAH's 23.5x P/E. On an enterprise value basis, SAH's 9.9x EV/EBITDA is more attractive than LAD's 11.4x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $2.7B | $6.6B |
| Enterprise ValueMkt cap + debt − cash | $6.9B | $21.0B |
| Trailing P/EPrice ÷ TTM EPS | 23.45x | 9.01x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.38x | 8.50x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.85x |
| EV / EBITDAEnterprise value multiple | 9.86x | 11.38x |
| Price / SalesMarket cap ÷ Revenue | 0.18x | 0.18x |
| Price / BookPrice ÷ Book value/share | 2.61x | 1.12x |
| Price / FCFMarket cap ÷ FCF | 6.53x | 34.61x |
Profitability & Efficiency
SAH leads this category, winning 6 of 9 comparable metrics.
Profitability & Efficiency
SAH delivers a 11.2% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $11 for LAD. LAD carries lower financial leverage with a 2.22x debt-to-equity ratio, signaling a more conservative balance sheet compared to SAH's 3.96x. On the Piotroski fundamental quality scale (0–9), SAH scores 6/9 vs LAD's 4/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +11.2% | +10.6% |
| ROA (TTM)Return on assets | +2.0% | +2.9% |
| ROICReturn on invested capital | +7.8% | +5.2% |
| ROCEReturn on capital employed | +16.3% | +8.2% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 3.96x | 2.22x |
| Net DebtTotal debt minus cash | $4.2B | $14.3B |
| Cash & Equiv.Liquid assets | $6M | $342M |
| Total DebtShort + long-term debt | $4.2B | $14.7B |
| Interest CoverageEBIT ÷ Interest expense | 1.89x | 2.34x |
Total Returns (Dividends Reinvested)
SAH leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in SAH five years ago would be worth $16,642 today (with dividends reinvested), compared to $7,904 for LAD. Over the past 12 months, SAH leads with a +29.4% total return vs LAD's -0.8%. The 3-year compound annual growth rate (CAGR) favors SAH at 27.9% vs LAD's 10.8% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | +30.7% | -12.2% |
| 1-Year ReturnPast 12 months | +29.4% | -0.8% |
| 3-Year ReturnCumulative with dividends | +109.3% | +35.9% |
| 5-Year ReturnCumulative with dividends | +66.4% | -21.0% |
| 10-Year ReturnCumulative with dividends | +392.8% | +264.5% |
| CAGR (3Y)Annualised 3-year return | +27.9% | +10.8% |
Risk & Volatility
SAH leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
SAH is the less volatile stock with a 1.05 beta — it tends to amplify market swings less than LAD's 1.09 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SAH currently trades 89.5% from its 52-week high vs LAD's 80.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.05x | 1.09x |
| 52-Week HighHighest price in past year | $89.62 | $360.56 |
| 52-Week LowLowest price in past year | $54.11 | $239.78 |
| % of 52W HighCurrent price vs 52-week peak | +89.5% | +80.8% |
| RSI (14)Momentum oscillator 0–100 | 70.5 | 60.6 |
| Avg Volume (50D)Average daily shares traded | 306K | 313K |
Analyst Outlook
Evenly matched — SAH and LAD each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates SAH as "Hold" and LAD as "Buy". Consensus price targets imply 41.4% upside for LAD (target: $412) vs -16.0% for SAH (target: $67). For income investors, SAH offers the higher dividend yield at 1.75% vs LAD's 0.75%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $67.33 | $411.67 |
| # AnalystsCovering analysts | 16 | 26 |
| Dividend YieldAnnual dividend ÷ price | +1.8% | +0.7% |
| Dividend StreakConsecutive years of raises | 10 | 12 |
| Dividend / ShareAnnual DPS | $1.41 | $2.18 |
| Buyback YieldShare repurchases ÷ mkt cap | +3.0% | +14.5% |
SAH leads in 3 of 6 categories (Profitability & Efficiency, Total Returns). LAD leads in 2 (Income & Cash Flow, Valuation Metrics). 1 tied.
SAH vs LAD: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is SAH or LAD a better buy right now?
For growth investors, Sonic Automotive, Inc.
(SAH) is the stronger pick with 6. 5% revenue growth year-over-year, versus 4. 0% for Lithia Motors, Inc. (LAD). Lithia Motors, Inc. (LAD) offers the better valuation at 9. 0x trailing P/E (8. 5x forward), making it the more compelling value choice. Analysts rate Lithia Motors, Inc. (LAD) a "Buy" — based on 26 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — SAH or LAD?
On trailing P/E, Lithia Motors, Inc.
(LAD) is the cheapest at 9. 0x versus Sonic Automotive, Inc. at 23. 5x. On forward P/E, Lithia Motors, Inc. is actually cheaper at 8. 5x.
03Which is the better long-term investment — SAH or LAD?
Over the past 5 years, Sonic Automotive, Inc.
(SAH) delivered a total return of +66. 4%, compared to -21. 0% for Lithia Motors, Inc. (LAD). Over 10 years, the gap is even starker: SAH returned +392. 8% versus LAD's +264. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — SAH or LAD?
By beta (market sensitivity over 5 years), Sonic Automotive, Inc.
(SAH) is the lower-risk stock at 1. 05β versus Lithia Motors, Inc. 's 1. 09β — meaning LAD is approximately 4% more volatile than SAH relative to the S&P 500. On balance sheet safety, Lithia Motors, Inc. (LAD) carries a lower debt/equity ratio of 2% versus 4% for Sonic Automotive, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — SAH or LAD?
By revenue growth (latest reported year), Sonic Automotive, Inc.
(SAH) is pulling ahead at 6. 5% versus 4. 0% for Lithia Motors, Inc. (LAD). On earnings-per-share growth, the picture is similar: Lithia Motors, Inc. grew EPS 9. 0% year-over-year, compared to -44. 7% for Sonic Automotive, Inc.. Over a 3-year CAGR, LAD leads at 10. 1% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — SAH or LAD?
Lithia Motors, Inc.
(LAD) is the more profitable company, earning 2. 2% net margin versus 0. 8% for Sonic Automotive, Inc. — meaning it keeps 2. 2% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LAD leads at 3. 8% versus 3. 6% for SAH. At the gross margin level — before operating expenses — LAD leads at 15. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is SAH or LAD more undervalued right now?
On forward earnings alone, Lithia Motors, Inc.
(LAD) trades at 8. 5x forward P/E versus 12. 4x for Sonic Automotive, Inc. — 3. 9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LAD: 41. 4% to $411. 67.
08Which pays a better dividend — SAH or LAD?
All stocks in this comparison pay dividends.
Sonic Automotive, Inc. (SAH) offers the highest yield at 1. 8%, versus 0. 7% for Lithia Motors, Inc. (LAD).
09Is SAH or LAD better for a retirement portfolio?
For long-horizon retirement investors, Sonic Automotive, Inc.
(SAH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 05), 1. 8% yield, +392. 8% 10Y return). Both have compounded well over 10 years (SAH: +392. 8%, LAD: +264. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between SAH and LAD?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: SAH is a small-cap quality compounder stock; LAD is a small-cap deep-value stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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