Head-To-Head Review: AutoCanada (AOCIF) versus Its Rivals

AutoCanada (OTCMKTS:AOCIF) is one of 286 public companies in the “Specialty Retail” industry, but how does it contrast to its competitors? We will compare AutoCanada to related businesses based on the strength of its analyst recommendations, earnings, valuation, risk, profitability, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for AutoCanada and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoCanada	0	2	2	0	2.50
AutoCanada Competitors	3539	15217	21167	547	2.46

As a group, “Specialty Retail” companies have a potential upside of 9.01%. Given AutoCanada’s competitors higher possible upside, analysts clearly believe AutoCanada has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares AutoCanada and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AutoCanada	N/A	N/A	6.91
AutoCanada Competitors	$6.97 billion	$387.72 million	14.11

AutoCanada’s competitors have higher revenue and earnings than AutoCanada. AutoCanada is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

44.8% of AutoCanada shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 21.1% of shares of all “Specialty Retail” companies are owned 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.

Dividends

AutoCanada pays an annual dividend of $1.11 per share and has a dividend yield of 7.4%. AutoCanada pays out 51.2% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 1.9% and pay out 35.6% of their earnings in the form of a dividend.

Profitability

This table compares AutoCanada and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AutoCanada	N/A	N/A	N/A
AutoCanada Competitors	-2.67%	-25.41%	2.94%

Summary

AutoCanada competitors beat AutoCanada on 9 of the 13 factors compared.

AutoCanada Company Profile

AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships and related business. The company offers a range of automotive products and services, including new and used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services, and extended service contracts; and vehicle protection, after-market products, and auction services. It also arranges financing and insurance for vehicle purchases by its customers through third-party finance and insurance sources. The company sells its vehicles under the Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Mazda, Mercedes-Benz, BMW, MINI, Ford, Acura, Honda, Kia, and Porsche brands. It operates franchised dealerships in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, and New Brunswick in Canada, as well as in Illinois, the United States. The company also offers used vehicles online. AutoCanada Inc. was incorporated in 2009 and is based in Edmonton, Canada.