Sonic Automotive (NYSE:SAH – Get Free Report) and Lazydays (NASDAQ:GORV – Get Free Report) are both small-cap retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Institutional and Insider Ownership
46.9% of Sonic Automotive shares are held by institutional investors. Comparatively, 89.7% of Lazydays shares are held by institutional investors. 41.0% of Sonic Automotive shares are held by company insiders. Comparatively, 61.5% of Lazydays shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Sonic Automotive has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, Lazydays has a beta of 2.02, meaning that its stock price is 102% more volatile than the S&P 500.
Earnings and Valuation
This table compares Sonic Automotive and Lazydays’ top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonic Automotive | $14.37 billion | 0.14 | $178.20 million | $4.88 | 11.95 |
| Lazydays | $1.08 billion | 0.04 | -$110.27 million | ($9.62) | -0.34 |
Sonic Automotive has higher revenue and earnings than Lazydays. Lazydays is trading at a lower price-to-earnings ratio than Sonic Automotive, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Sonic Automotive and Lazydays’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonic Automotive | 1.21% | 27.46% | 4.64% |
| Lazydays | -12.48% | -16.47% | -3.86% |
Analyst Recommendations
This is a summary of recent ratings and target prices for Sonic Automotive and Lazydays, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonic Automotive | 1 | 1 | 2 | 0 | 2.25 |
| Lazydays | 0 | 0 | 0 | 0 | N/A |
Sonic Automotive currently has a consensus target price of $56.75, suggesting a potential downside of 2.66%. Given Sonic Automotive’s higher possible upside, equities research analysts plainly believe Sonic Automotive is more favorable than Lazydays.
Summary
Sonic Automotive beats Lazydays on 10 of the 13 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 Lazydays
Lazydays Holdings, Inc. operates recreational vehicle (RV) dealerships under the Lazydays name in the United States. The company offers RV sales, RV-repair and services, financing and insurance products, third-party protection plans, and after-market parts and accessories. It also operates the Lazydays RV resort at Tampa, Florida. The company was founded in 1976 and is based in Tampa, Florida.
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