AutoNation Inc (AN)vsKAR Auction Services Inc (KAR)
AN
AutoNation Inc
$203.67
-1.71%
CONSUMER CYCLICAL · Cap: $6.92B
KAR
KAR Auction Services Inc
$30.88
+0.36%
CONSUMER CYCLICAL · Cap: $3.28B
Smart Verdict
WallStSmart Research — data-driven comparison
AutoNation Inc generates 1348% more annual revenue ($27.45B vs $1.90B). AN leads profitability with a 2.8% profit margin vs 0.1%. AN appears more attractively valued with a PEG of 0.58. KAR earns a higher WallStSmart Score of 65/100 (B-).
AN
Buy63
out of 100
Grade: C+
KAR
Strong Buy65
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for AN.
Margin of Safety
-65.7%
Fair Value
$18.64
Current Price
$30.88
$12.24 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Earnings expanding 138.5% YoY
Growing faster than its price suggests
Reasonable price relative to book value
Reasonable price relative to book value
Areas to Watch
2.8% margin — thin
Operating margin of 4.5%
Revenue declined 0.6%
Negative free cash flow — burning cash
Premium valuation, high expectations priced in
0.1% revenue growth
1.1% earnings growth
ROE of 0.1% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull Case : AN
The strongest argument for AN centers on P/E Ratio, Return on Equity, EPS Growth. PEG of 0.58 suggests the stock is reasonably priced for its growth.
Bull Case : KAR
The strongest argument for KAR centers on Price/Book. PEG of 1.34 suggests the stock is reasonably priced for its growth.
Bear Case : AN
The primary concerns for AN are Profit Margin, Operating Margin, Revenue Growth. Debt-to-equity of 5.02 is elevated, increasing financial risk. Thin 2.8% margins leave little buffer for downturns.
Bear Case : KAR
The primary concerns for KAR are P/E Ratio, Revenue Growth, EPS Growth. Thin 0.1% margins leave little buffer for downturns.
Key Dynamics to Monitor
KAR carries more volatility with a beta of 1.25 — expect wider price swings.
KAR is growing revenue faster at 0.1% — sustainability is the question.
KAR generates stronger free cash flow (111M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KAR scores higher overall (65/100 vs 63/100). 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.
KAR Auction Services Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
KAR Auction Services, Inc. provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company is headquartered in Carmel, Indiana.
Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
Want to dig deeper into these stocks?