WallStSmart

AutoNation Inc (AN)vsGilead Sciences Inc (GILD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Gilead Sciences Inc generates 7% more annual revenue ($29.44B vs $27.49B). GILD leads profitability with a 28.9% profit margin vs 2.5%. GILD appears more attractively valued with a PEG of 0.38. GILD earns a higher WallStSmart Score of 72/100 (B).

AN

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 8.7Quality: 5.3
Piotroski: 3/9Altman Z: 3.01

GILD

Strong Buy

72

out of 100

Grade: B

Growth: 5.3Profit: 9.5Value: 8.7Quality: 5.8
Piotroski: 6/9Altman Z: 1.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANUndervalued (+15.1%)

Margin of Safety

+15.1%

Fair Value

$244.66

Current Price

$205.97

$38.69 discount

UndervaluedFair: $244.66Overvalued
GILDUndervalued (+44.2%)

Margin of Safety

+44.2%

Fair Value

$235.52

Current Price

$131.33

$104.19 discount

UndervaluedFair: $235.52Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN5 strengths · Avg: 9.0/10
P/E RatioValuation
11.1x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.748/10

Growing faster than its price suggests

EPS GrowthGrowth
31.5%8/10

Earnings expanding 31.5% YoY

GILD6 strengths · Avg: 9.3/10
PEG RatioValuation
0.3810/10

Growing faster than its price suggests

Return on EquityProfitability
40.7%10/10

Every $100 of equity generates 41 in profit

Operating MarginProfitability
37.4%10/10

Strong operational efficiency at 37.4%

Market CapQuality
$166.40B9/10

Large-cap with strong market position

Profit MarginProfitability
28.9%9/10

Keeps 29 of every $100 in revenue as profit

EPS GrowthGrowth
23.4%8/10

Earnings expanding 23.4% YoY

Areas to Watch

AN4 concerns · Avg: 2.8/10
Profit MarginProfitability
2.5%3/10

2.5% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

GILD2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
4.7%4/10

4.7% revenue growth

Altman Z-ScoreHealth
1.814/10

Grey zone — moderate risk

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 0.74 suggests the stock is reasonably priced for its growth.

Bull Case : GILD

The strongest argument for GILD centers on PEG Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 28.9% and operating margin at 37.4%. PEG of 0.38 suggests the stock is reasonably priced for its growth.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.5% margins leave little buffer for downturns.

Bear Case : GILD

The primary concerns for GILD are Revenue Growth, Altman Z-Score.

Key Dynamics to Monitor

AN carries more volatility with a beta of 0.79 — expect wider price swings.

GILD is growing revenue faster at 4.7% — sustainability is the question.

GILD generates stronger free cash flow (2.4B), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

GILD scores higher overall (72/100 vs 63/100), backed by strong 28.9% margins. AN offers better value entry with a 15.1% margin of safety. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

AutoNation Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.

Gilead Sciences Inc

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Gilead Sciences, Inc. is an American biopharmaceutical company headquartered in Foster City, California, that focuses on researching and developing antiviral drugs used in the treatment of HIV, hepatitis B, hepatitis C, and influenza, including Harvoni and Sovaldi.

Want to dig deeper into these stocks?