Sonic Automotive (NYSE:SAH – Get Free Report) and Nextnrg (NASDAQ:NXXT – Get Free Report) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.
Risk & Volatility
Sonic Automotive has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Nextnrg has a beta of -0.57, suggesting that its share price is 157% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Sonic Automotive and Nextnrg, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonic Automotive | 0 | 1 | 4 | 1 | 3.00 |
| Nextnrg | 0 | 0 | 0 | 0 | 0.00 |
Profitability
This table compares Sonic Automotive and Nextnrg’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonic Automotive | 1.52% | 19.96% | 3.43% |
| Nextnrg | -62.85% | N/A | -295.04% |
Insider and Institutional Ownership
46.9% of Sonic Automotive shares are owned by institutional investors. Comparatively, 10.6% of Nextnrg shares are owned by institutional investors. 42.7% of Sonic Automotive shares are owned by insiders. Comparatively, 81.7% of Nextnrg shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Sonic Automotive and Nextnrg”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonic Automotive | $14.22 billion | 0.15 | $216.00 million | $6.18 | 9.94 |
| Nextnrg | $27.77 million | 10.64 | -$10.47 million | ($6.67) | -0.40 |
Sonic Automotive has higher revenue and earnings than Nextnrg. Nextnrg is trading at a lower price-to-earnings ratio than Sonic Automotive, indicating that it is currently the more affordable of the two stocks.
Summary
Sonic Automotive beats Nextnrg on 13 of the 15 factors compared between the two stocks.
About Sonic Automotive
Sonic Automotive, Inc. operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests. The EchoPark segment sells used cars and light trucks; and arranges finance and insurance product sales for its guests in pre-owned vehicle specialty retail locations. The Powersports Segment sells new and used powersports vehicles, such as motorcycles, and personal watercraft and all-terrain vehicles; and offers finance and insurance services. The company was incorporated in 1997 and is based in Charlotte, North Carolina.
About Nextnrg
NextNRG, Inc. engages in the provision of fuel delivery services. Its app-based interface provides customers with the ability to select the time and location of their fueling. It offers diesel, red diesel, and REC-90. The company was founded by Michael D. Farkas on March 28, 2019 and is headquartered in Miami, FL.
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