Comparing Lithia Motors (NYSE:LAD) and Lazydays (NASDAQ:GORV)

Lazydays (NASDAQ:GORV) and Lithia Motors (NYSE:LAD) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Lazydays and Lithia Motors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lazydays	0	2	0	0	2.00
Lithia Motors	0	4	6	0	2.60

Lazydays currently has a consensus price target of $2.00, suggesting a potential upside of 153.16%. Lithia Motors has a consensus price target of $357.40, suggesting a potential downside of 6.63%. Given Lazydays’ higher probable upside, analysts clearly believe Lazydays is more favorable than Lithia Motors.

Insider & Institutional Ownership

89.7% of Lazydays shares are held by institutional investors. 0.5% of Lazydays shares are held by company insiders. Comparatively, 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 is poised for long-term growth.

Volatility and Risk

Lazydays has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500. Comparatively, Lithia Motors has a beta of 1.67, indicating that its stock price is 67% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lazydays	$1.08 billion	0.01	-$110.27 million	($13.85)	-0.06
Lithia Motors	$31.04 billion	0.33	$1.00 billion	$29.30	13.06

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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lazydays	-20.83%	-62.37%	-8.53%
Lithia Motors	2.31%	12.95%	3.76%

Summary

Lithia Motors beats Lazydays on 11 of the 14 factors compared between the two stocks.

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.

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.