WallStSmart

AutoNation Inc (AN)vsSonic Automotive Inc (SAH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AutoNation Inc generates 77% more annual revenue ($27.45B vs $15.47B). AN leads profitability with a 2.8% profit margin vs 1.4%. SAH appears more attractively valued with a PEG of 0.45. 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: 4.0
Piotroski: 3/9Altman Z: 2.83

SAH

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 5.0Value: 6.7Quality: 5.5
Piotroski: 4/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for AN.

SAHSignificantly Overvalued (-26.7%)

Margin of Safety

-26.7%

Fair Value

$48.04

Current Price

$82.44

$34.40 premium

UndervaluedFair: $48.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN4 strengths · Avg: 9.5/10
P/E RatioValuation
9.8x10/10

Attractively priced relative to earnings

Return on EquityProfitability
30.5%10/10

Every $100 of equity generates 30 in profit

EPS GrowthGrowth
138.4%10/10

Earnings expanding 138.4% YoY

PEG RatioValuation
0.788/10

Growing faster than its price suggests

SAH4 strengths · Avg: 9.0/10
PEG RatioValuation
0.4510/10

Growing faster than its price suggests

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

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

2.8% margin — thin

Operating MarginProfitability
4.5%3/10

Operating margin of 4.5%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-0.6%2/10

Revenue declined 0.6%

SAH4 concerns · Avg: 2.5/10
Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

EPS GrowthGrowth
-12.3%2/10

Earnings declined 12.3%

Free Cash FlowQuality
$-1.50M2/10

Negative free cash flow — burning cash

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 0.78 suggests the stock is reasonably priced for its growth.

Bull Case : SAH

The strongest argument for SAH centers on PEG Ratio, Altman Z-Score, P/E Ratio. PEG of 0.45 suggests the stock is reasonably priced for its growth.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Debt-to-equity of 4.71 is elevated, increasing financial risk. Thin 2.8% margins leave little buffer for downturns.

Bear Case : SAH

The primary concerns for SAH are Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.51 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

SAH carries more volatility with a beta of 0.90 — expect wider price swings.

SAH is growing revenue faster at 7.6% — sustainability is the question.

SAH generates stronger free cash flow (-2M), providing more financial flexibility.

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

Bottom Line

AN scores higher overall (63/100 vs 59/100). 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.

Sonic Automotive Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.

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