WallStSmart

AutoNation Inc (AN)vsGroup 1 Automotive Inc (GPI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AutoNation Inc generates 24% more annual revenue ($27.45B vs $22.15B). AN leads profitability with a 2.8% profit margin vs 1.3%. GPI appears more attractively valued with a PEG of 0.34. AN earns a higher WallStSmart Score of 63/100 (C+).

AN

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 7.7Quality: 4.5
Piotroski: 4/9Altman Z: 2.85

GPI

Buy

51

out of 100

Grade: C-

Growth: 4.0Profit: 5.0Value: 8.3Quality: 5.5
Piotroski: 4/9Altman Z: 3.27

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN5 strengths · Avg: 9.2/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.5%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
138.5%10/10

Earnings expanding 138.5% YoY

PEG RatioValuation
0.588/10

Growing faster than its price suggests

Price/BookValuation
3.0x8/10

Reasonable price relative to book value

GPI4 strengths · Avg: 10.0/10
PEG RatioValuation
0.3410/10

Growing faster than its price suggests

P/E RatioValuation
11.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.1x10/10

Reasonable price relative to book value

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Areas to Watch

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

2.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

Free Cash FlowQuality
$-140.70M2/10

Negative free cash flow — burning cash

GPI4 concerns · Avg: 2.5/10
Profit MarginProfitability
1.3%3/10

1.3% margin — thin

Operating MarginProfitability
3.8%3/10

Operating margin of 3.8%

Revenue GrowthGrowth
-5.6%2/10

Revenue declined 5.6%

EPS GrowthGrowth
-20.1%2/10

Earnings declined 20.1%

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Return on Equity, EPS Growth. PEG of 0.58 suggests the stock is reasonably priced for its growth.

Bull Case : GPI

The strongest argument for GPI centers on PEG Ratio, P/E Ratio, Price/Book. PEG of 0.34 suggests the stock is reasonably priced for its growth.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Revenue Growth. Debt-to-equity of 5.02 is elevated, increasing financial risk. Thin 2.8% margins leave little buffer for downturns.

Bear Case : GPI

The primary concerns for GPI are Profit Margin, Operating Margin, Revenue Growth. Debt-to-equity of 2.03 is elevated, increasing financial risk. Thin 1.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

GPI carries more volatility with a beta of 0.82 — expect wider price swings.

AN is growing revenue faster at -0.6% — sustainability is the question.

GPI generates stronger free cash flow (84M), providing more financial flexibility.

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

Bottom Line

AN scores higher overall (63/100 vs 51/100). Both earn "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.

Group 1 Automotive Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Group 1 Automotive, Inc., operates in the automotive retail industry. The company is headquartered in Houston, Texas.

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