AutoNation Inc (AN)vsSpotify Technology SA (SPOT)
AN
AutoNation Inc
$205.97
+0.33%
CONSUMER CYCLICAL · Cap: $6.88B
SPOT
Spotify Technology SA
$417.83
-2.25%
COMMUNICATION SERVICES · Cap: $87.44B
Smart Verdict
WallStSmart Research — data-driven comparison
AutoNation Inc generates 57% more annual revenue ($27.49B vs $17.53B). SPOT leads profitability with a 15.4% profit margin vs 2.5%. AN appears more attractively valued with a PEG of 0.74. SPOT earns a higher WallStSmart Score of 64/100 (C+).
AN
Buy63
out of 100
Grade: C+
SPOT
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+15.1%
Fair Value
$244.66
Current Price
$205.97
$38.69 discount
Margin of Safety
-44.3%
Fair Value
$337.63
Current Price
$417.83
$80.20 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Growing faster than its price suggests
Earnings expanding 31.5% YoY
Every $100 of equity generates 38 in profit
Earnings expanding 222.4% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
2.5% margin — thin
Operating margin of 4.7%
Weak financial health signals
Revenue declined 2.1%
Expensive relative to growth rate
Moderate valuation
Trading at 8.8x book value
Comparative Analysis Report
WallStSmart ResearchBull 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 : SPOT
The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 15.4% and operating margin at 15.8%.
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 : SPOT
The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
AN profiles as a value stock while SPOT is a mature play — different risk/reward profiles.
SPOT carries more volatility with a beta of 1.55 — expect wider price swings.
SPOT is growing revenue faster at 8.2% — sustainability is the question.
SPOT generates stronger free cash flow (845M), providing more financial flexibility.
Bottom Line
SPOT scores higher overall (64/100 vs 63/100), backed by strong 15.4% margins. AN offers better value entry with a 15.1% margin of safety. 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.
Spotify Technology SA
COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA
Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.
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