Head-To-Head Analysis: Shoe Carnival (NASDAQ:SHOE) & AutoNation (NYSE:AN)

AutoNation (NYSE:AN) and Shoe Carnival (NASDAQ:SHOE) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, risk, analyst recommendations, institutional ownership, valuation and earnings.

Valuation and Earnings

This table compares AutoNation and Shoe Carnival”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AutoNation	$27.63 billion	0.21	$649.10 million	$20.81	8.82
Shoe Carnival	$1.14 billion	0.37	$52.27 million	$0.88	17.56

AutoNation has higher revenue and earnings than Shoe Carnival. AutoNation is trading at a lower price-to-earnings ratio than Shoe Carnival, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

AutoNation has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Shoe Carnival has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500.

Profitability

This table compares AutoNation and Shoe Carnival’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AutoNation	2.63%	31.18%	4.72%
Shoe Carnival	2.20%	5.32%	3.08%

Insider and Institutional Ownership

94.6% of AutoNation shares are owned by institutional investors. Comparatively, 66.0% of Shoe Carnival shares are owned by institutional investors. 1.4% of AutoNation shares are owned by insiders. Comparatively, 33.6% of Shoe Carnival shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for AutoNation and Shoe Carnival, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoNation	2	4	7	0	2.38
Shoe Carnival	1	1	0	1	2.33

AutoNation currently has a consensus price target of $227.50, suggesting a potential upside of 23.98%. Shoe Carnival has a consensus price target of $22.00, suggesting a potential upside of 42.39%. Given Shoe Carnival’s higher probable upside, analysts clearly believe Shoe Carnival is more favorable than AutoNation.

Summary

AutoNation beats Shoe Carnival on 9 of the 15 factors compared between the two stocks.

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.

About Shoe Carnival

Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.