WallStSmart

AutoNation Inc (AN)vsSonic Automotive Inc (SAH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AutoNation Inc generates 81% more annual revenue ($27.49B vs $15.19B). AN leads profitability with a 2.5% profit margin vs 0.7%. SAH appears more attractively valued with a PEG of 0.41. AN earns a higher WallStSmart Score of 66/100 (B-).

AN

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 6.0Value: 7.7Quality: 4.0
Piotroski: 3/9Altman Z: 2.83

SAH

Buy

53

out of 100

Grade: C-

Growth: 3.3Profit: 5.0Value: 6.0Quality: 5.5
Piotroski: 4/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AN.

SAHSignificantly Overvalued (-32.0%)

Margin of Safety

-32.0%

Fair Value

$46.08

Current Price

$80.58

$34.50 premium

UndervaluedFair: $46.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN5 strengths · Avg: 8.8/10
P/E RatioValuation
10.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.5%10/10

Every $100 of equity generates 30 in profit

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

EPS GrowthGrowth
31.5%8/10

Earnings expanding 31.5% YoY

SAH3 strengths · Avg: 9.3/10
PEG RatioValuation
0.4110/10

Growing faster than its price suggests

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

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%

SAH4 concerns · Avg: 3.5/10
P/E RatioValuation
26.7x4/10

Moderate valuation

Revenue GrowthGrowth
1.0%4/10

1.0% revenue growth

Profit MarginProfitability
0.7%3/10

0.7% margin — thin

Operating MarginProfitability
3.5%3/10

Operating margin of 3.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.71 suggests the stock is reasonably priced for its growth.

Bull Case : SAH

The strongest argument for SAH centers on PEG Ratio, Altman Z-Score, Price/Book. PEG of 0.41 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. Debt-to-equity of 4.71 is elevated, increasing financial risk. Thin 2.5% margins leave little buffer for downturns.

Bear Case : SAH

The primary concerns for SAH are P/E Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 4.51 is elevated, increasing financial risk. Thin 0.7% margins leave little buffer for downturns.

Key Dynamics to Monitor

SAH carries more volatility with a beta of 0.90 — expect wider price swings.

SAH is growing revenue faster at 1.0% — sustainability is the question.

SAH generates stronger free cash flow (-2M), providing more financial flexibility.

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

Bottom Line

AN scores higher overall (66/100 vs 53/100). 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.

Sonic Automotive Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.

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