Camping World Holdings (NYSE: CWH) and Sonic Automotive (NYSE:SAH) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.
Valuation & Earnings
This table compares Camping World Holdings and Sonic Automotive’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Camping World Holdings||$3.61 billion||0.19||$321.10 million||N/A||N/A|
|Sonic Automotive||$9.81 billion||0.08||$296.18 million||$1.49||11.34|
Camping World Holdings has higher revenue, but lower earnings than Sonic Automotive.
Camping World Holdings pays an annual dividend of $0.32 per share and has a dividend yield of 0.9%. Sonic Automotive pays an annual dividend of $0.20 per share and has a dividend yield of 1.2%. Sonic Automotive pays out 13.4% of its earnings in the form of a dividend.
This table compares Camping World Holdings and Sonic Automotive’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Camping World Holdings||N/A||N/A||N/A|
Institutional & Insider Ownership
83.2% of Camping World Holdings shares are held by institutional investors. Comparatively, 63.3% of Sonic Automotive shares are held by institutional investors. 66.6% of Camping World Holdings shares are held by insiders. Comparatively, 30.3% of Sonic Automotive shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of recent ratings and price targets for Camping World Holdings and Sonic Automotive, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Camping World Holdings||0||1||10||0||2.91|
Camping World Holdings presently has a consensus target price of $34.70, suggesting a potential upside of 0.03%. Sonic Automotive has a consensus target price of $23.67, suggesting a potential upside of 40.04%. Given Sonic Automotive’s higher possible upside, analysts plainly believe Sonic Automotive is more favorable than Camping World Holdings.
Camping World Holdings beats Sonic Automotive on 7 of the 13 factors compared between the two stocks.
Camping World Holdings Company Profile
Camping World Holdings, Inc. is a provider of a portfolio of services, protection plans, products and resources for recreational vehicle (RV) enthusiasts. The Company operates through two segments: Consumer Services and Plans, and Retail. Within the Consumer Services and Plans segment, the Company derives revenue from the sale of the offerings, including emergency roadside assistance; property and casualty insurance programs; travel assist programs; extended vehicle service contracts; co branded credit cards; vehicle financing and refinancing; club memberships, and publications and directories. Within the Retail segment, it derives revenue from the sale of the products, including new vehicles; used vehicles; parts and service, including RV accessories and supplies, and finance and insurance. The Company provides its offerings through its two brands: Good Sam and Camping World. Its Camping World brand operates a network of RV centric retail locations in the United States.
Sonic Automotive Company Profile
Sonic Automotive, Inc. is an automotive retailer in the United States. The Company’s operating segments include Franchised Dealerships and EchoPark. Its Franchised Dealerships segment consists of retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle repair and maintenance services, and arrange finance and insurance products. The EchoPark segment consists of standalone specialty retail locations that provide customers an opportunity to search, buy, service, finance and sell pre-owned vehicles. Its franchised dealerships provide services, including sales of both new and used cars, and light trucks; sales of replacement parts and performance of vehicle maintenance, manufacturer warranty repairs, and paint and collision repair services (collectively, Fixed Operations), and arrangement of extended warranties, service contracts, financing, insurance and other aftermarket products (collectively, F&I) for its customers.
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