Lithia Motors (NYSE:LAD – Get Free Report) and D’Ieteren Group (OTCMKTS:SIEVF – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Profitability
This table compares Lithia Motors and D’Ieteren Group’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Lithia Motors | 2.52% | 13.84% | 4.16% |
D’Ieteren Group | N/A | N/A | N/A |
Dividends
Lithia Motors pays an annual dividend of $2.12 per share and has a dividend yield of 0.7%. D’Ieteren Group pays an annual dividend of 0.60 per share and has a dividend yield of 0.3%. Lithia Motors pays out 6.3% of its earnings in the form of a dividend. D’Ieteren Group pays out 32.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lithia Motors has raised its dividend for 15 consecutive years. Lithia Motors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Lithia Motors | $31.04 billion | 0.27 | $1.00 billion | $33.87 | 9.30 |
D’Ieteren Group | N/A | N/A | N/A | 1.83 | 121.92 |
Lithia Motors has higher revenue and earnings than D’Ieteren Group. Lithia Motors is trading at a lower price-to-earnings ratio than D’Ieteren Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings for Lithia Motors and D’Ieteren Group, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Lithia Motors | 0 | 4 | 6 | 0 | 2.60 |
D’Ieteren Group | 0 | 0 | 0 | 0 | N/A |
Lithia Motors currently has a consensus target price of $334.00, indicating a potential upside of 5.98%. Given Lithia Motors’ higher probable upside, research analysts plainly believe Lithia Motors is more favorable than D’Ieteren Group.
Insider & Institutional Ownership
13.8% of D’Ieteren Group shares are held by institutional investors. 1.8% of Lithia Motors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Lithia Motors beats D’Ieteren Group on 11 of the 13 factors compared between the two stocks.
About Lithia Motors
Lithia Motors, Inc. operates as an automotive retailer worldwide. It operates in two segments, Vehicle Operations and Financing Operations. The company’s Vehicle Operations segment sells new and used vehicles; provides parts, repair, and maintenance services; vehicle finance; and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles. The company sells its products and services through the Driveway and Greencars brand names through a network of locations, e-commerce platforms, and captive finance solutions. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.
About D’Ieteren Group
D'Ieteren Group SA operates as an investment company in Belgium, France, rest of Europe, the Middle East, Africa, America, the Asia-Pacific, and internationally. The company operates through D'Ieteren Automotive, Belron, Moleskine, TVH, and PHE segments. It distributes Volkswagen, Audi, SEAT, KODA, CUPRA, Bentley, Lamborghini, Bugatti, Rimac, Porsche, and Microlino brand vehicles, as well as related spare parts and accessories; sells used vehicles; and offers maintenance, financing, and leasing services. The company also provides vehicle glass repair, replacement, and recalibration services under the Autoglass, Carglass, Lebeau Vitres d'autos, Speedy Glass, Safelite AutoGlass, O'Brien, and Smith&Smith brand names; and manages vehicle glass and other insurance claims on behalf of insurance customers. In addition, it offers notebooks, writing tools, planners, diaries, bags, and reading accessories, as well as smart writing system and mobile apps. Further, the company distributes aftermarket parts for material handling, construction, agricultural, and industrial equipment. Additionally, it manages real estate assets, including offices, workshops, concessions, logistics centers, residential units, car parks, and landbanks; reconverts and redevelops sites; and offers real estate advisory services. D'Ieteren Group SA was founded in 1805 and is headquartered in Brussels, Belgium.
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