Head-To-Head Analysis: AutoNation (NYSE:AN) & Jumbo (OTCMKTS:JUMSF)

AutoNation (NYSE:AN) and Jumbo (OTCMKTS:JUMSF) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

94.6% of AutoNation shares are held by institutional investors. Comparatively, 38.7% of Jumbo shares are held by institutional investors. 1.4% of AutoNation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares AutoNation and Jumbo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AutoNation	$27.63 billion	0.24	$649.10 million	$21.59	9.21
Jumbo	N/A	N/A	N/A	N/A	N/A

AutoNation has higher revenue and earnings than Jumbo.

Analyst Ratings

This is a summary of current ratings for AutoNation and Jumbo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoNation	0	2	10	0	2.83
Jumbo	0	0	0	0	0.00

AutoNation currently has a consensus price target of $250.00, indicating a potential upside of 25.72%. Given AutoNation’s stronger consensus rating and higher probable upside, research analysts plainly believe AutoNation is more favorable than Jumbo.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AutoNation	2.82%	31.24%	4.97%
Jumbo	N/A	N/A	N/A

Summary

AutoNation beats Jumbo on 9 of the 9 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 Jumbo

Jumbo S.A. engages in the retail sale of toys, baby products, gift articles, household products, stationery, seasonal and decoration items, books, and related products in Greece, Cyprus, Bulgaria, and Romania. The company operates e-jumbo, an online store. It is involved in the wholesale of toys and related products to third parties. Jumbo S.A. was incorporated in 1986 and is headquartered in Athens, Greece.