AutoCanada (AOCIF) & Its Competitors Critical Review

AutoCanada (OTCMKTS:AOCIF) is one of 286 public companies in the “Specialty Retail” industry, but how does it contrast to its competitors? We will compare AutoCanada to related companies based on the strength of its institutional ownership, dividends, risk, analyst recommendations, earnings, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for AutoCanada and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoCanada	0	2	1	0	2.33
AutoCanada Competitors	3543	15251	21195	548	2.46

As a group, “Specialty Retail” companies have a potential upside of 10.54%. Given AutoCanada’s competitors stronger consensus rating and higher probable upside, analysts plainly believe AutoCanada has less favorable growth aspects than its competitors.

Profitability

This table compares AutoCanada and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AutoCanada	N/A	N/A	N/A
AutoCanada Competitors	-2.49%	-25.89%	2.98%

Dividends

AutoCanada pays an annual dividend of $1.11 per share and has a dividend yield of 6.1%. AutoCanada pays out 51.2% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.0% and pay out 35.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares AutoCanada and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AutoCanada	N/A	N/A	8.42
AutoCanada Competitors	$6.96 billion	$387.72 million	14.73

AutoCanada’s competitors have higher revenue and earnings than AutoCanada. AutoCanada is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

44.8% of AutoCanada shares are held by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are held by institutional investors. 21.1% of shares of all “Specialty Retail” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

AutoCanada competitors beat AutoCanada on 10 of the 13 factors compared.

AutoCanada Company Profile

AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships and related business. The company offers a range of automotive products and services, including new and used vehicles, vehicle leasing, vehicle parts, vehicle maintenance and collision repair services, and extended service contracts; and vehicle protection, after-market products, and auction services. It also arranges financing and insurance for vehicle purchases by its customers through third-party finance and insurance sources. The company sells its vehicles under the Chrysler, Dodge, Jeep, Ram, FIAT, Alfa Romeo, Chevrolet, GMC, Buick, Cadillac, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Mazda, Mercedes-Benz, BMW, MINI, Ford, Acura, Honda, Kia, and Porsche brands. It operates franchised dealerships in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia, and New Brunswick in Canada, as well as in Illinois, the United States. The company also offers used vehicles online. AutoCanada Inc. was incorporated in 2009 and is based in Edmonton, Canada.