AutoNation (NYSE:AN) versus Nextnrg (NASDAQ:NXXT) Financial Analysis

AutoNation (NYSE:AN) and Nextnrg (NASDAQ:NXXT) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a summary of recent recommendations and price targets for AutoNation and Nextnrg, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoNation	0	3	4	0	2.57
Nextnrg	0	0	0	0	0.00

AutoNation presently has a consensus target price of $201.86, suggesting a potential upside of 21.58%. Given AutoNation’s stronger consensus rating and higher possible upside, equities research analysts plainly believe AutoNation is more favorable than Nextnrg.

Insider and Institutional Ownership

94.6% of AutoNation shares are held by institutional investors. Comparatively, 10.6% of Nextnrg shares are held by institutional investors. 1.0% of AutoNation shares are held by insiders. Comparatively, 81.7% of Nextnrg shares are held 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 AutoNation and Nextnrg’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AutoNation	2.59%	30.48%	5.62%
Nextnrg	-62.85%	N/A	-295.04%

Volatility & Risk

AutoNation has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Nextnrg has a beta of -0.57, indicating that its share price is 157% less volatile than the S&P 500.

Valuation and Earnings

This table compares AutoNation and Nextnrg”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AutoNation	$26.77 billion	0.24	$692.20 million	$16.94	9.80
Nextnrg	$27.77 million	13.33	-$10.47 million	($6.67)	-0.50

AutoNation has higher revenue and earnings than Nextnrg. Nextnrg 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 Nextnrg on 12 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 Nextnrg

NextNRG, Inc. engages in the provision of fuel delivery services. Its app-based interface provides customers with the ability to select the time and location of their fueling. It offers diesel, red diesel, and REC-90. The company was founded by Michael D. Farkas on March 28, 2019 and is headquartered in Miami, FL.