Worksport (NASDAQ:WKSP – Get Free Report) and AutoNation (NYSE:AN – Get Free Report) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Insider and Institutional Ownership
16.1% of Worksport shares are owned by institutional investors. Comparatively, 94.6% of AutoNation shares are owned by institutional investors. 8.0% of Worksport shares are owned by insiders. Comparatively, 1.0% of AutoNation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Worksport and AutoNation”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Worksport | $8.48 million | 2.83 | -$16.16 million | ($6.60) | -0.55 |
| AutoNation | $27.46 billion | 0.30 | $692.20 million | $15.96 | 13.77 |
AutoNation has higher revenue and earnings than Worksport. Worksport is trading at a lower price-to-earnings ratio than AutoNation, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Worksport and AutoNation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Worksport | 1 | 0 | 3 | 0 | 2.50 |
| AutoNation | 0 | 3 | 6 | 1 | 2.80 |
Worksport currently has a consensus price target of $14.00, suggesting a potential upside of 287.81%. AutoNation has a consensus price target of $222.63, suggesting a potential upside of 1.32%. Given Worksport’s higher probable upside, equities research analysts clearly believe Worksport is more favorable than AutoNation.
Profitability
This table compares Worksport and AutoNation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Worksport | -134.19% | -93.40% | -65.91% |
| AutoNation | 2.31% | 31.12% | 5.72% |
Risk and Volatility
Worksport has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, AutoNation has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.
Summary
AutoNation beats Worksport on 12 of the 15 factors compared between the two stocks.
About Worksport
Worksport Ltd., through its subsidiary, designs and distributes truck tonneau covers in Canada and the United States. The company offers soft tonneau covers, such as vinyl wrapped tri- and quad-fold tonneau covers; and hard tonneau covers, including tri- and quad-fold aluminum covers. It also offers energy products, such as Worksport SOLIS, a tonneau cover with integrated solar panels; and Worksport COR energy storage system, a modular, portable power station. It serves its products to automotive accessories, consumer electronics, and residential and commercial HVAC system markets. The company also sells its products through wholesalers, private labels, distributors, and online retail channels, including eBay, Amazon, Walmart, and e-commerce platform hosted on Shopify. Worksport Ltd. is based in West Seneca, New York.
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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