Reviewing Grabagun Digital (NYSE:PEW) & AutoNation (NYSE:AN)

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

Volatility & Risk

AutoNation has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Grabagun Digital has a beta of -0.08, indicating that its stock price is 108% less volatile than the S&P 500.

Insider & Institutional Ownership

94.6% of AutoNation shares are owned by institutional investors. Comparatively, 4.8% of Grabagun Digital shares are owned by institutional investors. 1.4% of AutoNation shares are owned by insiders. Comparatively, 27.8% of Grabagun Digital 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.

Profitability

This table compares AutoNation and Grabagun Digital’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%
Grabagun Digital	-6.42%	-6.15%	-5.16%

Analyst Ratings

This is a summary of recent ratings and target prices for AutoNation and Grabagun Digital, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoNation	0	2	10	0	2.83
Grabagun Digital	1	0	1	0	2.00

AutoNation currently has a consensus price target of $250.00, indicating a potential upside of 48.53%. Grabagun Digital has a consensus price target of $5.00, indicating a potential upside of 131.48%. Given Grabagun Digital’s higher possible upside, analysts clearly believe Grabagun Digital is more favorable than AutoNation.

Earnings & Valuation

This table compares AutoNation and Grabagun Digital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AutoNation	$27.63 billion	0.20	$649.10 million	$21.59	7.80
Grabagun Digital	$101.03 million	0.63	-$2.51 million	($0.23)	-9.39

AutoNation has higher revenue and earnings than Grabagun Digital. Grabagun Digital is trading at a lower price-to-earnings ratio than AutoNation, indicating that it is currently the more affordable of the two stocks.

Summary

AutoNation beats Grabagun Digital on 11 of the 14 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 Grabagun Digital

GrabAGun.com is an online retailer of firearms, ammunition and related accessories. GrabAGun.com, formerly known as Colombier Acquisition Corp. II, is based in COPPELL, Texas.