Lentuo International (LASLY) and AutoNation (AN) Critical Survey

Lentuo International (OTCMKTS:LASLY) and AutoNation (NYSE:AN) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lentuo International 0 0 0 0 N/A
AutoNation 2 6 1 0 1.89

AutoNation has a consensus target price of $49.86, indicating a potential upside of 22.50%. Given AutoNation’s higher probable upside, analysts clearly believe AutoNation is more favorable than Lentuo International.

Volatility and Risk

Lentuo International has a beta of 180, meaning that its stock price is 17,900% more volatile than the S&P 500. Comparatively, AutoNation has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Institutional & Insider Ownership

65.9% of AutoNation shares are owned by institutional investors. 2.8% of AutoNation shares are owned by 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 Lentuo International and AutoNation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lentuo International N/A N/A N/A
AutoNation 2.10% 16.49% 3.93%

Earnings and Valuation

This table compares Lentuo International and AutoNation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lentuo International N/A N/A N/A N/A N/A
AutoNation $21.53 billion 0.17 $434.60 million $3.81 10.68

AutoNation has higher revenue and earnings than Lentuo International.

Summary

AutoNation beats Lentuo International on 8 of the 9 factors compared between the two stocks.

About Lentuo International

Lentuo International, Inc. provides automobile retail services under the Lentuo brand. The company operates seven franchise dealerships, that offers services on different brands of vehicles, including Audi, FAW-Volkswagen, FAW-Mazda, Shanghai-Volkswagen, Toyota, Chang An-Mazda and GAC-Honda. It offers a wide range of automobile products and services through each of its franchise dealerships. The company also assists its customers with procuring automobile insurance and financing and other automobile-related services. It offers new passenger vehicles, auto parts and accessories for sale, as well as automobile repair and maintenance services, and provides a channel for vehicle manufacturers to gather customer feedback. The company was founded by Hetong Guo on June 10, 1994 and is headquartered in Beijing, China.

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, as well as arranges finance for vehicle purchases through third-party finance sources. As of December 31, 2017, it owned and operated 360 new vehicle franchises from 253 stores located primarily in metropolitan markets in the Sunbelt region. The company was founded in 1991 and is headquartered in Fort Lauderdale, Florida.

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