Lithia Motors (NYSE:LAD) versus Warby Parker (NYSE:WRBY) Head-To-Head Comparison

Warby Parker (NYSE:WRBY) and Lithia Motors (NYSE:LAD) are both mid-cap consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.

Volatility & Risk

Warby Parker has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, Lithia Motors has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Institutional & Insider Ownership

93.2% of Warby Parker shares are held by institutional investors. 16.8% of Warby Parker shares are held by insiders. Comparatively, 1.1% of Lithia Motors shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Warby Parker and Lithia Motors”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Warby Parker	$871.91 million	3.16	$1.64 million	$0.07	363.93
Lithia Motors	$37.63 billion	0.16	$819.60 million	$30.15	8.96

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Warby Parker	0.85%	3.36%	1.72%
Lithia Motors	1.88%	12.16%	3.14%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Warby Parker	0	4	6	0	2.60
Lithia Motors	0	6	6	0	2.50

Warby Parker presently has a consensus price target of $30.00, suggesting a potential upside of 17.76%. Lithia Motors has a consensus price target of $402.60, suggesting a potential upside of 49.00%. Given Lithia Motors’ higher probable upside, analysts plainly believe Lithia Motors is more favorable than Warby Parker.

Summary

Lithia Motors beats Warby Parker on 7 of the 13 factors compared between the two stocks.

About Warby Parker

Warby Parker Inc. provides eyewear products in the United States and Canada. The company offers eyeglasses, sunglasses, light-responsive lenses, blue-light-filtering lenses, non-prescription lenses, and contact lenses. It also provides accessories, such as cases, lenses kit with anti-fog spray, pouches, and anti-fog lens spray through its retail stores, website, and mobile apps. In addition, the company offers eye exams and vision tests. Warby Parker Inc. was incorporated in 2009 and is headquartered in New York, New York.

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.