Lazydays (NASDAQ:GORV) versus Lithia Motors (NYSE:LAD) Critical Review

Lithia Motors (NYSE:LAD) and Lazydays (NASDAQ:GORV) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Profitability

This table compares Lithia Motors and Lazydays’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lithia Motors	2.21%	12.43%	3.53%
Lazydays	-20.83%	-62.37%	-8.53%

Risk & Volatility

Lithia Motors has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Lazydays has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.

Valuation and Earnings

This table compares Lithia Motors and Lazydays”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lithia Motors	$36.19 billion	0.22	$802.00 million	$29.68	10.28
Lazydays	$920.77 million	0.01	-$110.27 million	($13.85)	-0.04

Lithia Motors has higher revenue and earnings than Lazydays. Lazydays is trading at a lower price-to-earnings ratio than Lithia Motors, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

89.7% of Lazydays shares are owned by institutional investors. 1.8% of Lithia Motors shares are owned by insiders. Comparatively, 0.5% of Lazydays shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Lithia Motors and Lazydays, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lithia Motors	0	4	7	0	2.64
Lazydays	0	2	0	0	2.00

Lithia Motors currently has a consensus price target of $371.36, indicating a potential upside of 21.72%. Lazydays has a consensus price target of $2.00, indicating a potential upside of 300.80%. Given Lazydays’ higher possible upside, analysts clearly believe Lazydays is more favorable than Lithia Motors.

Summary

Lithia Motors beats Lazydays on 11 of the 14 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 Lazydays

Lazydays Holdings, Inc. operates recreational vehicle (RV) dealerships under the Lazydays name in the United States. The company offers RV sales, RV-repair and services, financing and insurance products, third-party protection plans, and after-market parts and accessories. It also operates the Lazydays RV resort at Tampa, Florida. The company was founded in 1976 and is based in Tampa, Florida.