Lithia Motors (NYSE:LAD) vs. Nextnrg (NASDAQ:NXXT) Critical Review

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

Profitability

This table compares Lithia Motors and Nextnrg’s 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%
Nextnrg	-62.85%	N/A	-295.04%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Lithia Motors and Nextnrg, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lithia Motors	0	3	7	0	2.70
Nextnrg	0	0	0	0	0.00

Lithia Motors currently has a consensus price target of $361.20, indicating a potential upside of 12.25%. Given Lithia Motors’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Lithia Motors is more favorable than Nextnrg.

Volatility & Risk

Lithia Motors has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Nextnrg has a beta of -0.58, meaning that its stock price is 158% less volatile than the S&P 500.

Institutional & Insider Ownership

10.6% of Nextnrg shares are owned by institutional investors. 0.9% of Lithia Motors shares are owned by insiders. Comparatively, 81.7% of Nextnrg shares are owned by 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lithia Motors	$36.80 billion	0.23	$802.00 million	$31.73	10.14
Nextnrg	$27.77 million	12.77	-$10.47 million	($6.67)	-0.48

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

Summary

Lithia Motors beats Nextnrg 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 Nextnrg

NextNRG, Inc. engages in the provision of fuel delivery services. Its app-based interface provides customers with the ability to select the time and location of their fueling. It offers diesel, red diesel, and REC-90. The company was founded by Michael D. Farkas on March 28, 2019 and is headquartered in Miami, FL.