Zalando (OTCMKTS:ZLNDY – Get Free Report) and AutoNation (NYSE:AN – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.
Valuation & Earnings
This table compares Zalando and AutoNation”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zalando | N/A | N/A | N/A | $0.22 | 67.23 |
| AutoNation | N/A | N/A | N/A | $21.59 | 7.64 |
AutoNation is trading at a lower price-to-earnings ratio than Zalando, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
94.6% of AutoNation shares are held by institutional investors. 1.4% of AutoNation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for Zalando and AutoNation, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zalando | 0 | 1 | 1 | 2 | 3.25 |
| AutoNation | 2 | 3 | 8 | 0 | 2.46 |
AutoNation has a consensus target price of $230.00, suggesting a potential upside of 39.43%. Given AutoNation’s higher probable upside, analysts clearly believe AutoNation is more favorable than Zalando.
Profitability
This table compares Zalando and AutoNation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zalando | N/A | N/A | N/A |
| AutoNation | N/A | N/A | N/A |
Summary
AutoNation beats Zalando on 5 of the 7 factors compared between the two stocks.
About Zalando
Zalando SE operates an online platform for fashion and lifestyle products. The company operates through Fashion Store and Offprice segments. It provides shoes, apparel, accessories, and beauty products with free delivery and returns, as well as various payment options. The company also sells its products through Lounge by Zalando; and brick-and-mortar outlet stores. It operates in Germany, Austria, Switzerland, Belgium, Croatia, the Czech Republic, Denmark, Estonia, Finland, Hungary, France, Ireland, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. The company was founded in 2008 and is headquartered in Berlin, Germany.
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.
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