Sonic Automotive (NYSE: SAH) is one of 20 publicly-traded companies in the “Automotive dealers & gasoline service stations” industry, but how does it weigh in compared to its competitors? We will compare Sonic Automotive to related businesses based on the strength of its analyst recommendations, dividends, risk, earnings, institutional ownership, profitability and valuation.
Earnings and Valuation
This table compares Sonic Automotive and its competitors top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Sonic Automotive||$9.87 billion||$92.98 million||10.70|
|Sonic Automotive Competitors||$8.01 billion||$220.42 million||12.11|
Sonic Automotive has higher revenue, but lower earnings than its competitors. Sonic Automotive 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.
Insider and Institutional Ownership
64.2% of Sonic Automotive shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Automotive dealers & gasoline service stations” companies are owned by institutional investors. 32.3% of Sonic Automotive shares are owned by company insiders. Comparatively, 16.5% 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 is poised for long-term growth.
Volatility and Risk
Sonic Automotive has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500. Comparatively, Sonic Automotive’s competitors have a beta of 9.96, indicating that their average stock price is 896% more volatile than the S&P 500.
This table compares Sonic Automotive and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sonic Automotive Competitors||3.22%||33.52%||3.60%|
This is a breakdown of recent ratings and price targets for Sonic Automotive and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sonic Automotive Competitors||115||620||667||28||2.43|
Sonic Automotive currently has a consensus price target of $23.33, indicating a potential upside of 17.85%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 15.41%. Given Sonic Automotive’s higher possible upside, analysts clearly believe Sonic Automotive is more favorable than its competitors.
Sonic Automotive pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. Sonic Automotive pays out 13.0% of its earnings in the form of a dividend. As a group, “Automotive dealers & gasoline service stations” companies pay a dividend yield of 1.6% and pay out 20.5% of their earnings in the form of a dividend. Sonic Automotive has increased its dividend for 2 consecutive years.
Sonic Automotive competitors beat Sonic Automotive on 10 of the 15 factors compared.
Sonic Automotive Company Profile
Sonic Automotive, Inc. is an automotive retailer in the United States. The Company’s operating segments include Franchised Dealerships and EchoPark. Its Franchised Dealerships segment consists of retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle repair and maintenance services, and arrange finance and insurance products. The EchoPark segment consists of standalone specialty retail locations that provide customers an opportunity to search, buy, service, finance and sell pre-owned vehicles. Its franchised dealerships provide services, including sales of both new and used cars, and light trucks; sales of replacement parts and performance of vehicle maintenance, manufacturer warranty repairs, and paint and collision repair services (collectively, Fixed Operations), and arrangement of extended warranties, service contracts, financing, insurance and other aftermarket products (collectively, F&I) for its customers.
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