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AN vs LAD
Which Stock Would AI Choose? AutoNation (AN) vs. Lithia Motors (LAD) Stock Comparison
Key Takeaways
- AutoNation (AN) has posted stronger recent relative performance, with positive year-to-date returns, while Lithia Motors (LAD) remains in negative territory over the same stretch.
- Both dealership groups leaned on recurring, higher-margin businesses — aftersales and captive finance — to offset softer new-vehicle volumes in recent quarters.
- LAD offers a dividend yield near 1% and a broader geographic footprint, while AN has no dividend but runs a higher return on equity and a lower beta.
- AN carries lower financial leverage and lower share-price volatility, whereas LAD trades with a higher beta and a larger debt load from its acquisition-heavy model.
- Tickeron AI Verdict: Based on trend consistency, stability, and relative positioning, the AI currently favors AN over LAD.
- For deeper context on each name, explore AN Major News and AN Today's Price Move, as well as LAD Major News and LAD Today's Price Move.
- To see which automated strategies are best positioned for current market conditions, explore Trending AI Robots.
Introduction
AutoNation and Lithia Motors are two of the largest automotive retailers in the United States, and they frequently appear side by side on the shortlists of investors tracking the auto-dealership sector. Both generate most of their revenue from new- and used-vehicle sales while steadily building recurring income through aftersales (parts and service) and captive finance operations. This stock comparison is most relevant for investors and traders weighing two distinct growth philosophies: AutoNation's disciplined, buyback-heavy capital-return approach versus Lithia's acquisition-driven expansion across the U.S., Canada, and the U.K. Understanding their relative performance, business models, and market positioning can help clarify which profile aligns with a given risk tolerance in the current market environment.
AN Overview and Recent Performance
AutoNation (AN), headquartered in Fort Lauderdale, Florida, is the second-largest U.S. automotive retailer, operating more than 240 dealerships and roughly 50 collision centers concentrated in Sunbelt markets. Its recent results illustrate a dealer successfully shifting the earnings mix toward recurring income. In its most recent quarter, adjusted diluted earnings per share (EPS) rose modestly year over year — a seventh consecutive quarter of growth — even as revenue was roughly flat and same-store sales turned slightly negative. Record aftersales gross profit of about $617 million, now roughly half of total gross profit, and a fast-scaling captive lender, AutoNation Finance, with a loan portfolio near $2.9 billion and return on equity near 24%, provided the earnings support.
Sentiment around AN has been shaped by aggressive share repurchases — about $620 million year to date — which reduced the share count and lifted per-share results while net income declined. The stock trades at a single-digit price-to-earnings (P/E) ratio near 8.9, with a relatively low beta near 0.83, and its year-to-date return has been positive. Persistent watch items include softer used-vehicle affordability, rising inventory days' supply, and a sharp year-over-year decline in battery electric vehicle (BEV) unit sales.
LAD Overview and Recent Performance
Lithia Motors (LAD), branded as Lithia & Driveway, is the largest U.S. auto retailer, with nearly 470 locations across the United States, the United Kingdom, and Canada and roughly 60 vehicle brands. Its most recent quarter delivered record revenue of about $9.9 billion and a 9% increase in adjusted diluted EPS, supported by a double-digit rise in used-vehicle gross profit per unit, resilient aftersales, and expansion of its captive Driveway Finance Corporation. Management also raised the quarterly dividend by 7% to $0.75 per share, giving the stock a forward dividend yield near 1%.
Despite solid operating results, LAD has faced heavier selling pressure over recent months, with the shares down meaningfully from their 52-week high and negative on a year-to-date basis. The company's acquisition-driven strategy has produced strong revenue growth but also a larger debt burden — total debt near $16.9 billion — and a higher beta near 1.28, signaling greater volatility than the broader market. Investors are weighing that expansion and leverage profile against a cheaper valuation and a longer runway for market-share gains.
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Head-to-Head Comparison
Although both companies operate in the same sector, their market positioning differs in several important ways. AutoNation (AN) is a domestic, Sunbelt-focused operator that has emphasized capital returns and recurring earnings, resulting in a higher return on equity, lower leverage, and lower beta. Lithia Motors (LAD) is a more geographically diversified, acquisition-driven consolidator with international exposure, faster top-line growth, and a dividend, but also higher debt and greater share-price volatility.
On momentum, the contrast is clear: AN has sustained positive year-to-date returns and recently rallied on its earnings report, while LAD remains negative year to date and well below its 52-week high despite beating earnings estimates. In terms of risk factors, both face cyclical new-vehicle demand, affordability pressures, and inventory normalization, but LAD adds integration and leverage risk from its acquisition pace. Sentiment-wise, AN benefits from a cleaner, buyback-supported narrative, whereas LAD is more exposed to investor debate over its balance sheet and growth trade-offs.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would currently favor AutoNation (AN) over Lithia Motors (LAD). The reasoning centers on relative positioning rather than any single metric: AN has demonstrated more consistent trend behavior, positive year-to-date performance, lower volatility (beta near 0.83 versus roughly 1.28), and a stronger return on equity, alongside a leaner leverage profile. While LAD offers a dividend and a longer acquisition-led growth runway, its higher beta, larger debt load, and weaker recent price momentum introduce comparatively more uncertainty. This conclusion is expressed in probabilistic terms and should not be read as a definitive prediction or as personal investment advice.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is AN is a Buy and LAD is a Buy.
AN in upward trend: 10-day moving average crossed above 50-day moving average on November 06, 2026
The 10-day moving average for AN crossed bullishly above the 50-day moving average on November 06, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 72%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 22, 2026. You may want to consider a long position or call options on AN as a result. In 60 of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 68%.
The Moving Average Convergence Divergence (MACD) for AN just turned positive on October 09, 2026. Looking at past instances where AN's MACD turned positive, the stock continued to rise in 27 of 43 cases over the following month. The odds of a continued upward trend are 63%.
AN moved above its 50-day moving average on October 30, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +5.38% 3-day Advance, the price is estimated to grow further. Considering data from situations where AN advanced for three days, in 221 of 339 cases, the price rose further within the following month. The odds of a continued upward trend are 65%.
The Aroon Indicator entered an Uptrend today. In 124 of 232 cases where AN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 53%.
Bearish Trend Analysis
The 10-day RSI Indicator for AN moved out of overbought territory on November 06, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 30 similar instances where the indicator moved out of overbought territory. In 21 of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at 70%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 9 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
AN broke above its upper Bollinger Band on October 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 31 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 47 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating steady price growth. AN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 60 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.693) is normal, around the industry mean (1.554). P/E Ratio (8.440) is within average values for comparable stocks, (12.811). Projected Growth (PEG Ratio) (0.444) is also within normal values, averaging (0.695). Dividend Yield (0.000) settles around the average of (0.011) among similar stocks. P/S Ratio (0.255) is also within normal values, averaging (0.919).
The Tickeron PE Growth Rating for this company is 77 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
LAD in upward trend: price may ascend as a result of having broken its lower Bollinger Band on October 21, 2026
LAD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 27 of 29 cases where LAD's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where LAD's RSI Oscillator exited the oversold zone, 22 of 28 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 79%.
The Momentum Indicator moved above the 0 level on November 04, 2026. You may want to consider a long position or call options on LAD as a result. In 67 of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 77%.
The Moving Average Convergence Divergence (MACD) for LAD just turned positive on October 15, 2026. Looking at past instances where LAD's MACD turned positive, the stock continued to rise in 31 of 46 cases over the following month. The odds of a continued upward trend are 67%.
LAD moved above its 50-day moving average on November 11, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +5.94% 3-day Advance, the price is estimated to grow further. Considering data from situations where LAD advanced for three days, in 217 of 310 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 43 of 63 cases where LAD's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 68%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LAD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 71%.
The Aroon Indicator for LAD entered a downward trend on October 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 22 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 54 (best 1 - 100 worst), indicating steady price growth. LAD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 57 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.060) is normal, around the industry mean (1.554). P/E Ratio (10.204) is within average values for comparable stocks, (12.811). Projected Growth (PEG Ratio) (0.561) is also within normal values, averaging (0.695). Dividend Yield (0.010) settles around the average of (0.011) among similar stocks. P/S Ratio (0.213) is also within normal values, averaging (0.919).
The Tickeron SMR rating for this company is 68 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. LAD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock worse than average.
AN | LAD | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 30 | 30 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 60 Fair valued | 57 Fair valued | |
PROFIT vs RISK RATING 1..100 | 47 | 100 | |
SMR RATING 1..100 | 31 | 68 | |
PRICE GROWTH RATING 1..100 | 49 | 54 | |
P/E GROWTH RATING 1..100 | 77 | 22 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
LAD's Valuation (57) in the Specialty Stores industry is in the same range as AN (60). This means that LAD’s stock grew similarly to AN’s over the last 12 months.
AN's Profit vs Risk Rating (47) in the Specialty Stores industry is somewhat better than the same rating for LAD (100). This means that AN’s stock grew somewhat faster than LAD’s over the last 12 months.
AN's SMR Rating (31) in the Specialty Stores industry is somewhat better than the same rating for LAD (68). This means that AN’s stock grew somewhat faster than LAD’s over the last 12 months.
AN's Price Growth Rating (49) in the Specialty Stores industry is in the same range as LAD (54). This means that AN’s stock grew similarly to LAD’s over the last 12 months.
LAD's P/E Growth Rating (22) in the Specialty Stores industry is somewhat better than the same rating for AN (77). This means that LAD’s stock grew somewhat faster than AN’s over the last 12 months.
| AN | LAD | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 70% | 1 day ago 79% |
| Stochastic ODDS (%) | 1 day ago 69% | 1 day ago 68% |
| Momentum ODDS (%) | 1 day ago 68% | 1 day ago 77% |
| MACD ODDS (%) | 3 days ago 63% | 1 day ago 67% |
| TrendWeek ODDS (%) | 1 day ago 68% | 1 day ago 68% |
| TrendMonth ODDS (%) | 1 day ago 65% | 1 day ago 67% |
| Advances ODDS (%) | 8 days ago 65% | 8 days ago 70% |
| Declines ODDS (%) | 18 days ago 61% | 25 days ago 71% |
| BollingerBands ODDS (%) | 1 day ago 80% | 1 day ago 90% |
| Aroon ODDS (%) | 1 day ago 53% | 1 day ago 66% |
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
AN’s FA Score shows that 1 FA rating(s) are green while LAD’s FA Score has 1 green FA rating(s).
- AN’s FA Score: 1 green, 4 red.
- LAD’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
AN’s TA Score shows that 6 TA indicator(s) are bullish while LAD’s TA Score has 6 bullish TA indicator(s).
- AN’s TA Score: 6 bullish, 4 bearish.
- LAD’s TA Score: 6 bullish, 3 bearish.
Price Growth
AN (@Automotive Aftermarket) experienced а +2.04% price change this week, while LAD (@Automotive Aftermarket) price change was -0.84% for the same time period.
The average weekly price growth across all stocks in the @Automotive Aftermarket industry was -2.92%. For the same industry, the average monthly price growth was -0.10%, and the average quarterly price growth was -14.11%.
Reported Earning Dates
AN is expected to report earnings on Feb 16, 2027.
LAD is expected to report earnings on Feb 17, 2027.
Industries' Descriptions
@Automotive Aftermarket (-2.92% weekly)The Automotive Aftermarket consists of the manufacturing, remanufacturing, distribution, retailing, and installation of vehicle parts and accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer. The aftermarket parts many not be manufactured by the OEM. According to a Technavio study, the US automotive parts aftermarket size is estimated to grow by USD 24.33 billion during 2018-2022 (CAGR 3%). Like many other industries, the automotive aftermarket is also being intensely penetrated by the digital boom. The online auto parts sales market is predicted to exceed $13B by 2020 (according to a study by Mirakl).
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AN and
Correlation & Price change
A.I.dvisor indicates that over the last year, AN has been closely correlated with PAG. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if AN jumps, then PAG could also see price increases.
LAD and
Correlation & Price change
A.I.dvisor indicates that over the last year, LAD has been closely correlated with AN. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if LAD jumps, then AN could also see price increases.
| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| KLAG | 17.07 | 1.61 | +10.45% |
| Leverage Shares 2x Long KLAC Daily ETF (KLAG) | |||
| BMAY | 48.51 | 0.42 | +0.88% |
| Innovator U.S. Equity Buffer ETF - May (BMAY) | |||
| FDL | 53.91 | 0.16 | +0.30% |
| First Trust Morningstar Dividend Leaders Index Fund (FDL) | |||
| HYGH | 85.11 | 0.22 | +0.26% |
| iShares Interest Rate Hedged High Yield Bond ETF (HYGH) | |||
| TRBF | 47.62 | -0.11 | -0.23% |
| Angel Oak Total Return ETF (TRBF) | |||