Head-To-Head Survey: AutoNation (NYSE:AN) and Worksport (NASDAQ:WKSP)

Worksport (NASDAQ:WKSP) and AutoNation (NYSE:AN) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings for Worksport and AutoNation, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worksport	1	0	3	0	2.50
AutoNation	0	3	6	1	2.80

Worksport currently has a consensus target price of $14.00, suggesting a potential upside of 319.16%. AutoNation has a consensus target price of $222.63, suggesting a potential downside of 0.85%. Given Worksport’s higher probable upside, analysts plainly believe Worksport is more favorable than AutoNation.

Profitability

This table compares Worksport and AutoNation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worksport	-134.19%	-93.40%	-65.91%
AutoNation	2.31%	31.12%	5.72%

Risk & Volatility

Worksport has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, AutoNation has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Valuation & Earnings

This table compares Worksport and AutoNation”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worksport	$8.48 million	2.62	-$16.16 million	($6.60)	-0.51
AutoNation	$26.77 billion	0.32	$692.20 million	$15.96	14.07

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.

Insider & Institutional Ownership

16.1% of Worksport shares are held by institutional investors. Comparatively, 94.6% of AutoNation shares are held by institutional investors. 8.0% of Worksport shares are held by company insiders. Comparatively, 1.0% of AutoNation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

AutoNation beats Worksport on 12 of the 15 factors compared between the two stocks.

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.

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.