Comparing Fincera (YUANF) and AutoNation (AN)

AutoNation (NYSE:AN) and Fincera (OTCMKTS:YUANF) are both retail/wholesale companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

64.7% of AutoNation shares are owned by institutional investors. 2.4% of AutoNation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for AutoNation and Fincera, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AutoNation 3 4 1 0 1.75
Fincera 0 0 0 0 N/A

AutoNation currently has a consensus target price of $41.38, suggesting a potential upside of 9.39%. Given AutoNation’s higher probable upside, analysts clearly believe AutoNation is more favorable than Fincera.

Profitability

This table compares AutoNation and Fincera’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AutoNation 1.85% 15.89% 3.97%
Fincera 26.44% 176.83% 5.59%

Volatility & Risk

AutoNation has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Fincera has a beta of -0.18, indicating that its share price is 118% less volatile than the S&P 500.

Earnings & Valuation

This table compares AutoNation and Fincera’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AutoNation $21.41 billion 0.16 $396.00 million $4.49 8.43
Fincera $156.69 million 5.34 -$1.28 million N/A N/A

AutoNation has higher revenue and earnings than Fincera.

Summary

AutoNation beats Fincera on 7 of the 11 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, as well as arranges finance for vehicle purchases through third-party finance sources. As of December 31, 2018, it owned and operated 326 new vehicle franchises from 239 stores located primarily in metropolitan markets in the Sunbelt region. The company was founded in 1991 and is headquartered in Fort Lauderdale, Florida.

About Fincera

Fincera Inc. focuses on providing online lending and e-commerce services for small and medium-sized businesses (SMBs) and individuals in China. The company operates in two segments, Internet-Based Financial and E-Commerce Services, and Property Lease and Management. The company's financial services platforms include CeraPay, a revolving credit product that processes and settles transactions between its borrowers and merchants; and CeraVest, a peer-to-peer lending platform that provides short-term financing primarily to SMBs. Its e-commerce products comprise TruShip, an online e-commerce platform for trucking industry merchants; AutoChekk, an e-commerce platform for the passenger vehicle industry; and PingPing, an e-commerce platform for small businesses to establish an online presence. The company also owns and leases office space; and operates and manages Shijiazhuang Hilton hotel in the Kaiyuan Finance Center building. The company was formerly known as AutoChina International Limited and changed its name to Fincera Inc. in July 2015. Fincera Inc. was founded in 1994 and is headquartered in Shijiazhuang, the People's Republic of China. Fincera Inc. is a subsidiary of Honest Best International Ltd.

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