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CHDN vs LAD

CHDN
Churchill Downs Incorporated
NEUTRAL
Price
$90.84
Market Cap
$6.33B
Sector
Consumer Cyclical
AI Confidence
85%
LAD
Lithia Motors, Inc.
NEUTRAL
Price
$277.24
Market Cap
$6.46B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
CHDN
17.57
LAD
8.58
Forward P/E
CHDN
12.56
LAD
6.88
P/B Ratio
CHDN
6.26
LAD
0.99
P/S Ratio
CHDN
2.16
LAD
0.17
EV/EBITDA
CHDN
11.89
LAD
11.15

Profitability

Gross Margin
CHDN
33.58%
LAD
15.43%
Operating Margin
CHDN
18.8%
LAD
3.89%
Profit Margin
CHDN
13.09%
LAD
2.18%
ROE
CHDN
35.71%
LAD
12.42%
ROA
CHDN
6.24%
LAD
4.22%

Growth

Revenue Growth
CHDN
6.7%
LAD
0.3%
Earnings Growth
CHDN
-25.2%
LAD
-28.4%

Financial Health

Debt/Equity
CHDN
4.92
LAD
2.35
Current Ratio
CHDN
0.6
LAD
1.17
Quick Ratio
CHDN
0.42
LAD
0.22

Dividends

Dividend Yield
CHDN
0.48%
LAD
0.79%
Payout Ratio
CHDN
8.28%
LAD
6.75%

AI Verdict

CHDN NEUTRAL

CHDN presents a stark contrast between analyst optimism and deterministic valuation metrics. While the Piotroski F-Score of 4/9 indicates stable health, the stock trades at a significant premium to its Graham Number ($41.08) and Intrinsic Value ($36.19). High leverage (Debt/Equity of 4.92) and poor liquidity (Current Ratio 0.60) are offset by an exceptional ROE of 35.71%. The primary concern is the divergence between modest revenue growth (6.7%) and a sharp decline in earnings growth (-25.2%).

Strengths
Exceptional Return on Equity (ROE) of 35.71%
Strong analyst consensus with a 'strong_buy' rating and target price of $135.58
P/E ratio (17.57) is significantly lower than the Consumer Cyclical sector average (33.44)
Risks
Severe earnings contraction (-25.2% YoY and -28.5% Q/Q)
High financial leverage with a Debt/Equity ratio of 4.92
Liquidity risk indicated by a Current Ratio of 0.60 and Quick Ratio of 0.42
LAD NEUTRAL

LAD presents a classic 'value trap' profile, characterized by a weak Piotroski F-Score of 3/9 indicating deteriorating financial health and crashing earnings growth (-28.4% YoY). While the stock appears significantly undervalued based on the Graham Number ($452.1) and a low P/E of 8.58, the fundamental decay and bearish technical trend offset these valuation advantages. The divergence between the bullish analyst target ($364.60) and the negative earnings trajectory suggests a disconnect between market expectations and current operational reality.

Strengths
Extremely low P/E ratio (8.58) and Forward P/E (6.88)
Strong defensive valuation relative to Graham Number ($452.1)
Very low Price-to-Sales ratio (0.17) indicating high revenue efficiency relative to market cap
Risks
Weak financial health as evidenced by a Piotroski F-Score of 3/9
Severe earnings contraction with YoY growth at -28.40% and Q/Q at -35.60%
High leverage with a Debt/Equity ratio of 2.35

Compare Another Pair

CHDN vs LAD: Head-to-Head Comparison

This page compares Churchill Downs Incorporated (CHDN) and Lithia Motors, Inc. (LAD) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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