AutoNation vs Lithia Motors
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KIRA’s take AI analyst
I put AutoNation and Lithia Motors 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 $27.6B for AutoNation.
- Lithia Motors grew revenue faster (4.0%, against 3.2%).
- Lithia Motors turned more of its sales into free cash flow (0.0% FCF margin, against −0.7%).
- AutoNation earned a higher return on the capital invested in it (14.7%, against 7.8%).
- Investors pay more for each dollar of Lithia Motors’s earnings: a P/E of 9.5x against 7.4x for AutoNation.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
AutoNation
AN
7/10
Gross marginOperating marginNet marginReturn on capitalReturn on equityPiotroski F-scoreShare count change
Lithia Motors
LAD
3/10
Revenue growth5-year growthFCF margin
Side by side
Best in the row
| Latest fiscal year | AN FY25 | LAD FY25 |
|---|---|---|
| Size | ||
| Market cap | $5.4B | $6.5B |
| Revenue | $27.6B | $37.6B |
| Free cash flow | −$198M | $5.8M |
| Net income | $649M | $820M |
| Growth | ||
| Revenue growth | 3.2% | 4.0% |
| 5-year growth | 6.3% | 23.5% |
| Share count change | −6.9% | −6.3% |
| Profitability | ||
| Gross margin | 17.9% | 15.2% |
| Operating margin | 4.5% | 4.2% |
| Net margin | 2.4% | 2.2% |
| FCF margin | −0.7% | 0.0% |
| Return on capital | 14.7% | 7.8% |
| Return on equity | 27.1% | 12.4% |
| Balance sheet | ||
| Net debt | $3.9B | $9.4B |
| Net debt / EBITDA | — | 4.9x |
| Dividends and buybacks | $792M | $1.0B |
| Valuation & quality | ||
| P/E | 7.4x | 9.5x |
| Piotroski F-score | 6 | 3 |
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.