Head to Head Analysis: AutoNation (AN) & Its Rivals

AutoNation (NYSE:AN) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it weigh in compared to its peers? We will compare AutoNation to related businesses based on the strength of its earnings, dividends, profitability, analyst recommendations, risk, institutional ownership and valuation.

Institutional & Insider Ownership

94.6% of AutoNation shares are held by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are held by institutional investors. 1.4% of AutoNation shares are held by company insiders. Comparatively, 20.6% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

AutoNation has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, AutoNation’s peers have a beta of 1.91, suggesting that their average stock price is 91% more volatile than the S&P 500.

Earnings and Valuation

This table compares AutoNation and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AutoNation	$27.63 billion	$649.10 million	8.85
AutoNation Competitors	$7.24 billion	$386.51 million	30.30

AutoNation has higher revenue and earnings than its peers. AutoNation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares AutoNation and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AutoNation	2.63%	31.18%	4.72%
AutoNation Competitors	-3.62%	-13.67%	3.21%

Analyst Ratings

This is a summary of recent ratings and target prices for AutoNation and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoNation	2	4	7	0	2.38
AutoNation Competitors	3675	15594	21618	590	2.46

AutoNation currently has a consensus price target of $227.50, indicating a potential upside of 23.54%. As a group, “Specialty Retail” companies have a potential upside of 7.41%. Given AutoNation’s higher probable upside, equities research analysts clearly believe AutoNation is more favorable than its peers.

Summary

AutoNation beats its peers on 8 of the 13 factors compared.

About AutoNation

AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services. The company also provides automotive finance and insurance products comprising vehicle services and other protection products; and indirect financing for vehicles, as well as arranges finance for vehicle purchases through third-party finance sources. It owns and operates new vehicle franchises from stores located primarily in metropolitan markets in the Sunbelt region, as well as AutoNation-branded collision centers, AutoNation USA used vehicle stores, AutoNation-branded automotive auction operations, and parts distribution centers. The company was formerly known as Republic Industries, Inc. and changed its name to AutoNation, Inc. in 1999. AutoNation, Inc. was incorporated in 1980 and is headquartered in Fort Lauderdale, Florida.