WallStSmart

AutoNation Inc (AN)vsAT&T Inc. (T)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

AT&T Inc. generates 360% more annual revenue ($126.53B vs $27.49B). T leads profitability with a 16.9% profit margin vs 2.5%. AN appears more attractively valued with a PEG of 0.74. T earns a higher WallStSmart Score of 64/100 (C+).

AN

Buy

63

out of 100

Grade: C+

Growth: 5.3Profit: 6.0Value: 8.7Quality: 5.3
Piotroski: 3/9Altman Z: 3.01

T

Buy

64

out of 100

Grade: C+

Growth: 3.3Profit: 7.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANUndervalued (+15.1%)

Margin of Safety

+15.1%

Fair Value

$244.66

Current Price

$205.97

$38.69 discount

UndervaluedFair: $244.66Overvalued
TUndervalued (+21.5%)

Margin of Safety

+21.5%

Fair Value

$32.17

Current Price

$25.16

$7.01 discount

UndervaluedFair: $32.17Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN5 strengths · Avg: 9.0/10
P/E RatioValuation
11.1x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.3%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.748/10

Growing faster than its price suggests

EPS GrowthGrowth
31.5%8/10

Earnings expanding 31.5% YoY

T5 strengths · Avg: 8.6/10
P/E RatioValuation
8.3x10/10

Attractively priced relative to earnings

Market CapQuality
$175.52B9/10

Large-cap with strong market position

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

Operating MarginProfitability
22.7%8/10

Strong operational efficiency at 22.7%

Free Cash FlowQuality
$2.68B8/10

Generating 2.7B in free cash flow

Areas to Watch

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

2.5% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-2.1%2/10

Revenue declined 2.1%

T3 concerns · Avg: 3.3/10
PEG RatioValuation
1.814/10

Expensive relative to growth rate

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

EPS GrowthGrowth
-11.3%2/10

Earnings declined 11.3%

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 0.74 suggests the stock is reasonably priced for its growth.

Bull Case : T

The strongest argument for T centers on P/E Ratio, Market Cap, Price/Book. Profitability is solid with margins at 16.9% and operating margin at 22.7%.

Bear Case : AN

The primary concerns for AN are Profit Margin, Operating Margin, Piotroski F-Score. Thin 2.5% margins leave little buffer for downturns.

Bear Case : T

The primary concerns for T are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

AN carries more volatility with a beta of 0.79 — expect wider price swings.

T is growing revenue faster at 2.9% — sustainability is the question.

T generates stronger free cash flow (2.7B), providing more financial flexibility.

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

Bottom Line

T scores higher overall (64/100 vs 63/100), backed by strong 16.9% margins. AN offers better value entry with a 15.1% margin of safety. 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.

AT&T Inc.

COMMUNICATION SERVICES · TELECOM SERVICES · USA

AT&T Inc. is an American multinational conglomerate holding company, Delaware-registered but headquartered at Whitacre Tower in Downtown Dallas, Texas. It is the world largest telecommunications company, and the second largest provider of mobile telephone services.

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