Lithia Motors vs Penske Automotive Group
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KIRA’s take AI analyst
I put Lithia Motors and Penske Automotive Group side by side, using each one’s latest annual report. Here is what stands out:
- Lithia Motors is the larger business, with $37.6B of revenue in fiscal 2025 against $31.8B for Penske Automotive Group.
- Lithia Motors grew revenue faster (4.0%, against −0.2%).
- Penske Automotive Group turned more of its sales into free cash flow (2.1% FCF margin, against 0.0%).
- Penske Automotive Group earned a higher return on the capital invested in it (12.8%, against 7.8%).
- Investors pay more for each dollar of Penske Automotive Group’s earnings: a P/E of 15.4x against 9.7x for Lithia Motors.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Lithia Motors
LAD
4/11
Revenue growth5-year growthOperating marginShare count change
Penske Automotive Group
PAG
7/11
Gross marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | LAD FY25 | PAG FY25 |
|---|---|---|
| Size | ||
| Market cap | $6.7B | $14.0B |
| Revenue | $37.6B | $31.8B |
| Free cash flow | $5.8M | $651M |
| Net income | $820M | $935M |
| Growth | ||
| Revenue growth | 4.0% | −0.2% |
| 5-year growth | 23.5% | 9.2% |
| Share count change | −6.3% | −1.0% |
| Profitability | ||
| Gross margin | 15.2% | 16.4% |
| Operating margin | 4.2% | 4.0% |
| Net margin | 2.2% | 2.9% |
| FCF margin | 0.0% | 2.1% |
| Return on capital | 7.8% | 12.8% |
| Return on equity | 12.4% | 17.1% |
| Balance sheet | ||
| Net debt | $9.4B | $2.1B |
| Net debt / EBITDA | 4.9x | 1.5x |
| Dividends and buybacks | $1.0B | $503M |
| Valuation & quality | ||
| P/E | 9.7x | 15.4x |
| Piotroski F-score | 3 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.