AN vs SAH

For growth investors, Sonic Automotive, Inc.

(SAH) is the stronger pick with 6. 5% revenue growth year-over-year, versus 3. 2% for AutoNation, Inc. (AN). AutoNation, Inc. (AN) offers the better valuation at 12. 0x trailing P/E (9. 7x forward), making it the more compelling value choice. Analysts rate AutoNation, Inc. (AN) a "Buy" — based on 34 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, AutoNation, Inc.

(AN) is the cheapest at 12. 0x versus Sonic Automotive, Inc. at 23. 1x. On forward P/E, AutoNation, Inc. is actually cheaper at 9. 7x.

Over the past 5 years, AutoNation, Inc.

(AN) delivered a total return of +91. 6%, compared to +61. 6% for Sonic Automotive, Inc. (SAH). Over 10 years, the gap is even starker: SAH returned +387. 7% versus AN's +323. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), AutoNation, Inc.

(AN) is the lower-risk stock at 0. 85β versus Sonic Automotive, Inc. 's 1. 05β — meaning SAH is approximately 24% more volatile than AN relative to the S&P 500. On balance sheet safety, Sonic Automotive, Inc. (SAH) carries a lower debt/equity ratio of 4% versus 4% for AutoNation, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Sonic Automotive, Inc.

(SAH) is pulling ahead at 6. 5% versus 3. 2% for AutoNation, Inc. (AN). On earnings-per-share growth, the picture is similar: AutoNation, Inc. grew EPS 0. 7% year-over-year, compared to -44. 7% for Sonic Automotive, Inc.. Over a 3-year CAGR, SAH leads at 2. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

AutoNation, Inc.

(AN) is the more profitable company, earning 2. 3% net margin versus 0. 8% for Sonic Automotive, Inc. — meaning it keeps 2. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AN leads at 4. 8% versus 3. 6% for SAH. At the gross margin level — before operating expenses — AN leads at 17. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, AutoNation, Inc.

(AN) trades at 9. 7x forward P/E versus 12. 2x for Sonic Automotive, Inc. — 2. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AN: 21. 1% to $248. 00.

In this comparison, SAH (1.

8% yield) pays a dividend. AN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Sonic Automotive, Inc.

(SAH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 05), 1. 8% yield, +387. 7% 10Y return). Both have compounded well over 10 years (SAH: +387. 7%, AN: +323. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: AN is a small-cap deep-value stock; SAH is a small-cap quality compounder stock. SAH pays a dividend while AN does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.