Lithia Motors (NYSE:LAD – Get Rating) and Cazoo Group (NYSE:CZOO – Get Rating) are both retail/wholesale companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.
Institutional and Insider Ownership
98.2% of Lithia Motors shares are held by institutional investors. Comparatively, 70.8% of Cazoo Group shares are held by institutional investors. 1.9% of Lithia Motors shares are held by insiders. Comparatively, 29.9% of Cazoo Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Lithia Motors and Cazoo Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lithia Motors | 3.99% | 22.30% | 7.77% |
| Cazoo Group | N/A | N/A | N/A |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lithia Motors | 1 | 3 | 4 | 0 | 2.38 |
| Cazoo Group | 0 | 3 | 1 | 0 | 2.25 |
Lithia Motors currently has a consensus target price of $300.56, suggesting a potential upside of 34.36%. Cazoo Group has a consensus target price of $22.85, suggesting a potential upside of 1,244.12%. Given Cazoo Group’s higher possible upside, analysts clearly believe Cazoo Group is more favorable than Lithia Motors.
Risk & Volatility
Lithia Motors has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Cazoo Group has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500.
Valuation & Earnings
This table compares Lithia Motors and Cazoo Group’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lithia Motors | $28.46 billion | 0.21 | $1.25 billion | $40.82 | 5.48 |
| Cazoo Group | $1.25 billion | 0.05 | -$870.63 million | N/A | N/A |
Lithia Motors has higher revenue and earnings than Cazoo Group.
Summary
Lithia Motors beats Cazoo Group on 9 of the 12 factors compared between the two stocks.
About Lithia Motors
Lithia Motors, Inc. engages in the operation of automotive franchises and retail of new and used vehicles. It operates through the following segments: Domestic, Import and Luxury. The Domestic segment consists of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors, and Ford. The Import segment consists of automotive franchises that sell new vehicles manufactured by Honda, Toyota, Subaru, Nissan, and Volkswagen. The Luxury segment includes retail automotive franchises that sell new vehicles manufactured by BMW, Mercedes-Benz, and Lexus. The company was founded by Walt DeBoer and Sidney B. DeBoer in 1946 and is headquartered in Medford, OR.
About Cazoo Group
Cazoo Group Ltd operates as an online car retailer in the United Kingdom and rest of Europe. It allows consumers to purchase, finance, and subscribe to a car through online for delivery or collection. The company was founded in 2018 and is headquartered in London, the United Kingdom. Cazoo Group Ltd is a subsidiary of Cazoo Holdings Limited.
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