Analyzing AutoNation (NYSE:AN) & Acacia Diversified (OTCMKTS:ACCA)

AutoNation (NYSE:AN) and Acacia Diversified (OTCMKTS:ACCA) are both retail/wholesale companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Insider & Institutional Ownership

94.6% of AutoNation shares are owned by institutional investors. 1.0% of AutoNation shares are owned by company insiders. Comparatively, 50.2% of Acacia Diversified shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AutoNation	2.51%	30.08%	5.44%
Acacia Diversified	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent recommendations for AutoNation and Acacia Diversified, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoNation	0	3	4	2	2.89
Acacia Diversified	0	0	0	0	0.00

AutoNation currently has a consensus price target of $205.75, suggesting a potential downside of 3.15%. Given Acacia Diversified’s higher probable upside, analysts clearly believe Acacia Diversified is more favorable than AutoNation.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AutoNation	$26.97 billion	0.30	$692.20 million	$16.90	12.57
Acacia Diversified	N/A	N/A	N/A	N/A	N/A

AutoNation has higher revenue and earnings than Acacia Diversified.

Summary

AutoNation beats Acacia Diversified on 8 of the 10 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 Acacia Diversified

Acacia Diversified Holdings, Inc. engages in the extraction and processing of high-CBD/low-THC content medical grade hemp oils from medical hemp plants in the United States. The company is also involved in the research and development of botanicals endocannabinoid nutraceuticals product line; and retail and wholesale distribution of medicinal hemp products and dietary supplements. In addition, it offers consumer products under the EUFLORIA brand name for the distribution channels. The company was formerly known as Acacia Automotive, Inc. and changed its name to Acacia Diversified Holdings, Inc. in October 2012. Acacia Diversified Holdings, Inc. was incorporated in 1984 and is based in Clearwater, Florida.