WallStSmart

AutoNation Inc (AN)vsResMed Inc (RMD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AutoNation Inc generates 396% more annual revenue ($27.49B vs $5.54B). RMD leads profitability with a 27.4% profit margin vs 2.5%. AN appears more attractively valued with a PEG of 0.74. RMD earns a higher WallStSmart Score of 73/100 (B).

AN

Buy

63

out of 100

Grade: C+

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

RMD

Strong Buy

73

out of 100

Grade: B

Growth: 6.7Profit: 9.5Value: 5.3Quality: 8.3
Piotroski: 6/9Altman Z: 4.34
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
RMDOvervalued (-13.1%)

Margin of Safety

-13.1%

Fair Value

$229.58

Current Price

$206.76

$22.82 premium

UndervaluedFair: $229.58Overvalued

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

RMD4 strengths · Avg: 9.5/10
Operating MarginProfitability
35.3%10/10

Strong operational efficiency at 35.3%

Altman Z-ScoreHealth
4.3410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
25.3%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
27.4%9/10

Keeps 27 of every $100 in revenue as profit

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%

RMD0 concerns · Avg: 0/10

No major concerns identified

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 : RMD

The strongest argument for RMD centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 27.4% and operating margin at 35.3%. Revenue growth of 10.8% demonstrates continued momentum.

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 : RMD

No major red flags identified for RMD, but monitor valuation.

Key Dynamics to Monitor

AN profiles as a value stock while RMD is a mature play — different risk/reward profiles.

RMD carries more volatility with a beta of 0.84 — expect wider price swings.

RMD is growing revenue faster at 10.8% — sustainability is the question.

RMD generates stronger free cash flow (520M), providing more financial flexibility.

Bottom Line

RMD scores higher overall (73/100 vs 63/100), backed by strong 27.4% margins and 10.8% revenue growth. 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.

ResMed Inc

HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA

ResMed is a San Diego, California-based medical equipment company. It primarily provides cloud-connectable medical devices for the treatment of sleep apnea (such as CPAP devices and masks), chronic obstructive pulmonary disease (COPD), and other respiratory conditions.

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