Head-To-Head Comparison: AutoNation (NYSE:AN) versus Burlington Stores (NYSE:BURL)

AutoNation (NYSE:AN) and Burlington Stores (NYSE:BURL) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, risk, valuation, dividends and profitability.

Profitability

This table compares AutoNation and Burlington Stores’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AutoNation	2.82%	31.24%	4.97%
Burlington Stores	5.85%	41.72%	7.61%

Insider & Institutional Ownership

94.6% of AutoNation shares are held by institutional investors. 1.4% of AutoNation shares are held by insiders. Comparatively, 1.3% of Burlington Stores shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

AutoNation has a beta of 0.81, indicating that its share price is 19% less volatile than the S&P 500. Comparatively, Burlington Stores has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for AutoNation and Burlington Stores, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AutoNation	1	3	8	0	2.58
Burlington Stores	0	7	13	0	2.65

AutoNation presently has a consensus target price of $230.00, suggesting a potential upside of 47.35%. Burlington Stores has a consensus target price of $370.75, suggesting a potential upside of 36.22%. Given AutoNation’s higher probable upside, equities analysts plainly believe AutoNation is more favorable than Burlington Stores.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AutoNation	$27.63 billion	0.19	$649.10 million	$21.59	7.23
Burlington Stores	$11.57 billion	1.48	$610.15 million	$11.14	24.43

AutoNation has higher revenue and earnings than Burlington Stores. AutoNation is trading at a lower price-to-earnings ratio than Burlington Stores, indicating that it is currently the more affordable of the two stocks.

Summary

Burlington Stores beats AutoNation on 8 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 Burlington Stores

Burlington Stores, Inc. operates as a retailer of branded merchandise in the United States. The company provides fashion-focused merchandise, including women's ready-to-wear apparel, menswear, youth apparel, footwear, accessories, toys, gifts, and coats, as well as baby, home, and beauty products. It operates stores under the Burlington Stores, and Cohoes Fashions brand names in Washington D.C. and Puerto Rico. Burlington Stores, Inc. was founded in 1972 and is headquartered in Burlington, New Jersey.