IAA (NYSE:IAA) and AutoNation (NYSE:AN) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Earnings & Valuation
This table compares IAA and AutoNation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AutoNation||$21.41 billion||0.20||$396.00 million||$4.49||10.45|
AutoNation has higher revenue and earnings than IAA.
This is a summary of recent ratings and recommmendations for IAA and AutoNation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
IAA currently has a consensus target price of $48.80, suggesting a potential upside of 10.76%. AutoNation has a consensus target price of $41.38, suggesting a potential downside of 11.84%. Given IAA’s stronger consensus rating and higher probable upside, analysts plainly believe IAA is more favorable than AutoNation.
Insider and Institutional Ownership
64.0% of AutoNation shares are owned by institutional investors. 2.4% of AutoNation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares IAA and AutoNation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AutoNation beats IAA on 6 of the 9 factors compared between the two stocks.
IAA, Inc. provides salvage vehicle auctions and related services. It offers salvage auction services, such as inbound transportation logistics, inspection, evaluation, salvage recovery, titling, and settlement administrative services. The company's salvage auctions facilitate the remarketing of damaged vehicles designated as total losses by insurance companies, charity donation vehicles, recovered stolen (or theft) vehicles, and low value used vehicles through live and online auctions. As of December 31, 2018, it operated 179 salvage vehicle auction sites in the United States and Canada; and 14 locations in the United Kingdom. Insurance Auto Auctions, Inc. serves insurance companies, used vehicle dealers, rental car and fleet leasing companies, auto lenders, non-profit organizations, and the general public. The company was founded in 1982 and is headquartered in Westchester, Illinois. IAA, Inc.(NYSE:IAA) operates independently of KAR Auction Services, Inc. as of June 28, 2019.
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, as well as arranges finance for vehicle purchases through third-party finance sources. As of December 31, 2018, it owned and operated 326 new vehicle franchises from 239 stores located primarily in metropolitan markets in the Sunbelt region. The company was founded in 1991 and is headquartered in Fort Lauderdale, Florida.
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