WallStSmart

AutoNation Inc (AN)vsLowe's Companies Inc (LOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lowe's Companies Inc generates 229% more annual revenue ($90.43B vs $27.45B). LOW leads profitability with a 7.3% profit margin vs 2.8%. AN appears more attractively valued with a PEG of 0.58. AN earns a higher WallStSmart Score of 63/100 (C+).

AN

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 7.7Quality: 4.5
Piotroski: 4/9Altman Z: 2.85

LOW

Hold

50

out of 100

Grade: D+

Growth: 4.0Profit: 5.5Value: 5.3Quality: 6.0
Piotroski: 3/9Altman Z: 1.97
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AN.

LOWSignificantly Overvalued (-36.2%)

Margin of Safety

-36.2%

Fair Value

$144.51

Current Price

$198.18

$53.67 premium

UndervaluedFair: $144.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN4 strengths · Avg: 9.5/10
P/E RatioValuation
9.7x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.5%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
138.5%10/10

Earnings expanding 138.5% YoY

PEG RatioValuation
0.588/10

Growing faster than its price suggests

LOW4 strengths · Avg: 8.8/10
Debt/EquityHealth
-5.6510/10

Conservative balance sheet, low leverage

Market CapQuality
$110.43B9/10

Large-cap with strong market position

P/E RatioValuation
16.6x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$3.12B8/10

Generating 3.1B in free cash flow

Areas to Watch

AN4 concerns · Avg: 2.5/10
Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

Free Cash FlowQuality
$-140.70M2/10

Negative free cash flow — burning cash

LOW4 concerns · Avg: 3.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Altman Z-ScoreHealth
1.974/10

Grey zone — moderate risk

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Profit MarginProfitability
7.3%3/10

7.3% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull 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 : LOW

The strongest argument for LOW centers on Debt/Equity, Market Cap, P/E Ratio. PEG of 1.33 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 : LOW

The primary concerns for LOW are EPS Growth, Altman Z-Score, Return on Equity.

Key Dynamics to Monitor

LOW carries more volatility with a beta of 0.85 — expect wider price swings.

LOW is growing revenue faster at 8.3% — sustainability is the question.

LOW generates stronger free cash flow (3.1B), providing more financial flexibility.

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

Bottom Line

AN scores higher overall (63/100 vs 50/100). Both earn "Buy" and "Hold" 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.

Lowe's Companies Inc

CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA

Lowe's Companies, Inc. is an American retail company specializing in home improvement. Headquartered in Mooresville, North Carolina, the company operates a chain of retail stores in the United States and Canada.

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