Sonic Automotive (NYSE:SAH – Get Free Report) and Worksport (NASDAQ:WKSP – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.
Profitability
This table compares Sonic Automotive and Worksport’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonic Automotive | 1.69% | 19.42% | 3.42% |
| Worksport | -165.61% | -92.59% | -64.71% |
Analyst Ratings
This is a summary of current recommendations for Sonic Automotive and Worksport, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonic Automotive | 0 | 2 | 5 | 1 | 2.88 |
| Worksport | 0 | 0 | 3 | 0 | 3.00 |
Institutional and Insider Ownership
46.9% of Sonic Automotive shares are owned by institutional investors. Comparatively, 16.1% of Worksport shares are owned by institutional investors. 42.7% of Sonic Automotive shares are owned by company insiders. Comparatively, 8.0% of Worksport shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Sonic Automotive and Worksport”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonic Automotive | $14.22 billion | 0.20 | $216.00 million | $7.02 | 11.71 |
| Worksport | $10.21 million | 1.52 | -$16.16 million | ($6.60) | -0.45 |
Sonic Automotive has higher revenue and earnings than Worksport. Worksport is trading at a lower price-to-earnings ratio than Sonic Automotive, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Sonic Automotive has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Worksport has a beta of 2.01, meaning that its share price is 101% more volatile than the S&P 500.
Summary
Sonic Automotive beats Worksport on 11 of the 15 factors compared between the two stocks.
About Sonic Automotive
Sonic Automotive, Inc. operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests. The EchoPark segment sells used cars and light trucks; and arranges finance and insurance product sales for its guests in pre-owned vehicle specialty retail locations. The Powersports Segment sells new and used powersports vehicles, such as motorcycles, and personal watercraft and all-terrain vehicles; and offers finance and insurance services. The company was incorporated in 1997 and is based in Charlotte, North Carolina.
About Worksport
Worksport Ltd., through its subsidiary, designs and distributes truck tonneau covers in Canada and the United States. The company offers soft tonneau covers, such as vinyl wrapped tri- and quad-fold tonneau covers; and hard tonneau covers, including tri- and quad-fold aluminum covers. It also offers energy products, such as Worksport SOLIS, a tonneau cover with integrated solar panels; and Worksport COR energy storage system, a modular, portable power station. It serves its products to automotive accessories, consumer electronics, and residential and commercial HVAC system markets. The company also sells its products through wholesalers, private labels, distributors, and online retail channels, including eBay, Amazon, Walmart, and e-commerce platform hosted on Shopify. Worksport Ltd. is based in West Seneca, New York.
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