Comparing AutoNation (AN) & The Competition

AutoNation (NYSE: AN) is one of 20 public companies in the “Automotive dealers & gasoline service stations” industry, but how does it compare to its competitors? We will compare AutoNation to similar companies based on the strength of its earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Profitability

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This table compares AutoNation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AutoNation 2.02% 16.24% 3.81%
AutoNation Competitors 3.22% 33.52% 3.60%

Valuation and Earnings

This table compares AutoNation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AutoNation $21.53 billion $434.60 million 12.10
AutoNation Competitors $8.01 billion $220.42 million 12.20

AutoNation has higher revenue and earnings than its competitors. AutoNation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

AutoNation has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, AutoNation’s competitors have a beta of 9.98, meaning that their average share price is 898% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for AutoNation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AutoNation 0 10 2 0 2.17
AutoNation Competitors 115 614 664 28 2.43

AutoNation currently has a consensus price target of $50.78, indicating a potential upside of 10.10%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 18.69%. Given AutoNation’s competitors stronger consensus rating and higher possible upside, analysts plainly believe AutoNation has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

69.2% of AutoNation shares are owned by institutional investors. Comparatively, 64.7% of shares of all “Automotive dealers & gasoline service stations” companies are owned by institutional investors. 2.8% of AutoNation shares are owned by company insiders. Comparatively, 15.7% of shares of all “Automotive dealers & gasoline service stations” companies are owned by company 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.

Summary

AutoNation competitors beat AutoNation on 9 of the 13 factors compared.

AutoNation Company Profile

AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services. The company also provides automotive finance and insurance products comprising vehicle services and other protection products, as well as arranges finance for vehicle purchases through third-party finance sources. As of December 31, 2017, it owned and operated 360 new vehicle franchises from 253 stores located primarily in metropolitan markets in the Sunbelt region. The company was founded in 1991 and is headquartered in Fort Lauderdale, Florida.

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