AutoNation (NYSE:AN) and Lentuo International (OTCMKTS:LASLY) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Earnings and Valuation

This table compares AutoNation and Lentuo International’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AutoNation $21.53 billion 0.16 $434.60 million $3.81 10.23
Lentuo International N/A N/A N/A N/A N/A

AutoNation has higher revenue and earnings than Lentuo International.

Institutional & Insider Ownership

66.0% of AutoNation shares are held by institutional investors. 2.8% of AutoNation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

AutoNation has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Lentuo International has a beta of 173.7, suggesting that its stock price is 17,270% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for AutoNation and Lentuo International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AutoNation 2 5 1 0 1.88
Lentuo International 0 0 0 0 N/A

AutoNation currently has a consensus target price of $49.83, suggesting a potential upside of 27.84%. Given AutoNation’s higher possible upside, equities research analysts clearly believe AutoNation is more favorable than Lentuo International.

Profitability

This table compares AutoNation and Lentuo International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AutoNation 2.10% 16.21% 3.95%
Lentuo International N/A N/A N/A

Summary

AutoNation beats Lentuo International on 8 of the 9 factors compared between the two stocks.

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.

Lentuo International Company Profile

Lentuo International, Inc. provides automobile retail services under the Lentuo brand. The company operates seven franchise dealerships, that offers services on different brands of vehicles, including Audi, FAW-Volkswagen, FAW-Mazda, Shanghai-Volkswagen, Toyota, Chang An-Mazda and GAC-Honda. It offers a wide range of automobile products and services through each of its franchise dealerships. The company also assists its customers with procuring automobile insurance and financing and other automobile-related services. It offers new passenger vehicles, auto parts and accessories for sale, as well as automobile repair and maintenance services, and provides a channel for vehicle manufacturers to gather customer feedback. The company was founded by Hetong Guo on June 10, 1994 and is headquartered in Beijing, China.

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