Contrasting AutoNation (AN) and Its Rivals

AutoNation (NYSE:AN) is one of 285 public companies in the “Specialty Retail” industry, but how does it weigh in compared to its competitors? We will compare AutoNation to related companies based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, dividends, risk and profitability.

Earnings & Valuation

This table compares AutoNation and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AutoNation	$27.42 billion	$649.10 million	8.69
AutoNation Competitors	$7.06 billion	$386.51 million	31.22

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.

Profitability

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	2.63%	31.18%	4.72%
AutoNation Competitors	-3.62%	-13.77%	3.21%

Risk & Volatility

AutoNation has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, AutoNation’s competitors have a beta of 1.91, meaning that their average stock price is 91% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for AutoNation and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoNation	1	5	7	0	2.46
AutoNation Competitors	3685	15616	21636	592	2.46

AutoNation currently has a consensus price target of $228.20, indicating a potential upside of 26.16%. As a group, “Specialty Retail” companies have a potential upside of 6.37%. Given AutoNation’s stronger consensus rating and higher probable upside, equities analysts clearly believe AutoNation is more favorable than its competitors.

Institutional & Insider Ownership

94.6% of AutoNation shares are held by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are held by institutional investors. 1.4% of AutoNation shares are held by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies 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.

Summary

AutoNation beats its competitors on 9 of the 13 factors compared.

About AutoNation

AutoNation, Inc. is a U.S. automotive retailer that sells new and used vehicles through a network of dealerships. Its stores offer vehicles from a range of manufacturers, along with related products and services. The company also provides vehicle maintenance and repair, parts, and collision-repair services. Its offerings include financing and insurance products, as well as online tools that support vehicle research and purchasing. Founded in 1996, AutoNation operates dealerships across the United States, with a presence concentrated in the Sun Belt.