LAD vs VVV: Lithia Motors and Valvoline compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- Lithia Motors is the larger company, worth $6.7B, about 1.7 times Valvoline.
- Valvoline grew revenue faster over the last year (+24.1% vs +2.2%).
- Valvoline keeps more of each dollar of revenue as operating profit (15.3% vs 4.1%).
- On earnings, Lithia Motors is the cheaper stock (10.2x vs 41.1x).
- Lithia Motors's price assumes faster free cash flow growth: about 63% a year, against 27% for Valvoline (reverse DCF).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | LAD | VVV |
|---|---|---|
| Market cap | $6.7B | $3.9B |
| Share price | $290.24 | $30.73 |
| Revenue (last fiscal year) | $37.6B | $1.7B |
| Free cash flow (last fiscal year) | $6M | $38M |
| Revenue growth, last year | +2.2% | +24.1% |
| Revenue growth per year, last 5 fiscal years | +13.3% | +13.3% |
| Operating margin | 4.1% | 15.3% |
| Net margin | 1.9% | 5.2% |
| Return on equity | 11.2% | 24.4% |
| P/E (trailing) | 10.2x | 41.1x |
| Price / free cash flow | 34.7x | 103.4x |
| EV / EBITDA | 14.1x | 18.4x |
| FCF growth the price implies | 63.3% | 26.8% |
| Dividend yield | 0.77% | — |
| Debt / equity | 3.10x | 7.36x |
| Fundamental grade | D | D |
| Superinvestors holding it | 8 | 5 |
| Insider purchases, last 12 months | 0 | 3 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
Lithia Motors
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $22.8B | $1.5B | 7.3% |
| 2022 | $28.2B | -$913M | 6.9% |
| 2023 | $31.0B | -$703M | 5.5% |
| 2024 | $36.2B | $74M | 4.3% |
| 2025 | $37.6B | $6M | 4.2% |
Valvoline
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $1.0B | $301M | 23.1% |
| 2022 | $1.2B | $152M | 17.8% |
| 2023 | $1.4B | -$221M | 17.1% |
| 2024 | $1.6B | $41M | 22.7% |
| 2025 | $1.7B | $38M | 22.8% |
Where the revenue comes from
Lithia Motors · by segments, 2021
Import$9.7B43%
Domestic$7.0B31%
Luxury$6.1B27%
Valvoline · by segments, 2021
Global Products$1.8B59%
Retail Services$1.2B41%
Compare them in fullFifteen years of statements, quarterly results, DCF and IRR models, and any number of peers side by side.
Open LAD in InvestinglyQuestions
Which is bigger, Lithia Motors or Valvoline?
Lithia Motors (LAD), at $6.7B against $3.9B.
Is LAD or VVV cheaper?
By trailing P/E, Lithia Motors (10.2x) is cheaper than Valvoline (41.1x). A lower multiple can also mean the market expects less growth.
Which grows faster, LAD or VVV?
Valvoline: revenue grew +24.1% over the last year, against +2.2%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.