AutoCanada (OTCMKTS:AOCIF – Get Free Report) and ACV Auctions (NASDAQ:ACVA – Get Free Report) are both consumer cyclical companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.
Valuation & Earnings
This table compares AutoCanada and ACV Auctions’ top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AutoCanada | N/A | N/A | N/A | $2.17 | 7.33 |
| ACV Auctions | $421.53 million | 6.31 | -$102.19 million | ($0.58) | -28.71 |
AutoCanada has higher earnings, but lower revenue than ACV Auctions. ACV Auctions is trading at a lower price-to-earnings ratio than AutoCanada, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AutoCanada | 0 | 2 | 0 | 0 | 2.00 |
| ACV Auctions | 0 | 3 | 7 | 0 | 2.70 |
AutoCanada presently has a consensus target price of $27.80, indicating a potential upside of 74.73%. ACV Auctions has a consensus target price of $18.87, indicating a potential upside of 13.31%. Given AutoCanada’s higher possible upside, equities analysts plainly believe AutoCanada is more favorable than ACV Auctions.
Institutional & Insider Ownership
44.8% of AutoCanada shares are held by institutional investors. Comparatively, 75.6% of ACV Auctions shares are held by institutional investors. 13.7% of ACV Auctions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares AutoCanada and ACV Auctions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AutoCanada | N/A | N/A | N/A |
| ACV Auctions | -20.75% | -16.03% | -8.39% |
Summary
AutoCanada beats ACV Auctions on 6 of the 11 factors compared between the two stocks.
About AutoCanada
AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships. 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, 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, Ford, Infiniti, Nissan, Hyundai, Subaru, Audi, Volkswagen, Kia, Mazda, Mercedes-Benz, Acura, BMW, MINI, Volvo, Toyota, Lincoln, Porsche, and Honda 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.
About ACV Auctions
ACV Auctions Inc. operates a digital marketplace that connects buyers and sellers for the online auction of wholesale vehicles. The company provides data services insights into the condition and value of used vehicles, as well as customer financing services. ACV Auctions Inc. was incorporated in 2014 and is headquartered in Buffalo, New York.
Receive News & Ratings for AutoCanada Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AutoCanada and related companies with MarketBeat.com's FREE daily email newsletter.
