AutoNation (NYSE:AN – Get Free Report) and Worksport (NASDAQ:WKSP – Get Free Report) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for AutoNation and Worksport, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AutoNation | 0 | 3 | 5 | 1 | 2.78 |
| Worksport | 0 | 0 | 3 | 0 | 3.00 |
AutoNation presently has a consensus target price of $222.63, suggesting a potential upside of 2.33%. Worksport has a consensus target price of $14.00, suggesting a potential upside of 329.45%. Given Worksport’s stronger consensus rating and higher possible upside, analysts clearly believe Worksport is more favorable than AutoNation.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AutoNation | $26.77 billion | 0.31 | $692.20 million | $15.96 | 13.63 |
| Worksport | $8.48 million | 2.55 | -$16.16 million | ($6.60) | -0.49 |
AutoNation has higher revenue and earnings than Worksport. Worksport is trading at a lower price-to-earnings ratio than AutoNation, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares AutoNation and Worksport’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AutoNation | 2.31% | 31.12% | 5.72% |
| Worksport | -134.19% | -93.40% | -65.91% |
Risk & Volatility
AutoNation has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Worksport has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
Institutional and Insider Ownership
94.6% of AutoNation shares are owned by institutional investors. Comparatively, 16.1% of Worksport shares are owned by institutional investors. 1.0% of AutoNation shares are owned by company insiders. Comparatively, 8.0% of Worksport shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
AutoNation beats Worksport on 11 of the 15 factors compared between the two stocks.
About AutoNation
AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance, and wholesale parts and collision services. The company also provides automotive finance and insurance products comprising vehicle services and other protection products; and indirect financing for vehicles, as well as arranges finance for vehicle purchases through third-party finance sources. It owns and operates new vehicle franchises from stores located primarily in metropolitan markets in the Sunbelt region, as well as AutoNation-branded collision centers, AutoNation USA used vehicle stores, AutoNation-branded automotive auction operations, and parts distribution centers. The company was formerly known as Republic Industries, Inc. and changed its name to AutoNation, Inc. in 1999. AutoNation, Inc. was incorporated in 1980 and is headquartered in Fort Lauderdale, Florida.
About Worksport
Worksport Ltd., through its subsidiary, designs and distributes truck tonneau covers in Canada and the United States. The company offers soft tonneau covers, such as vinyl wrapped tri- and quad-fold tonneau covers; and hard tonneau covers, including tri- and quad-fold aluminum covers. It also offers energy products, such as Worksport SOLIS, a tonneau cover with integrated solar panels; and Worksport COR energy storage system, a modular, portable power station. It serves its products to automotive accessories, consumer electronics, and residential and commercial HVAC system markets. The company also sells its products through wholesalers, private labels, distributors, and online retail channels, including eBay, Amazon, Walmart, and e-commerce platform hosted on Shopify. Worksport Ltd. is based in West Seneca, New York.
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