Sonic Automotive, Inc. (SAH) vs Valvoline (VVV)

Sonic Automotive, Inc. and Valvoline are both Auto & Truck Dealerships companies. Valvoline is the larger, with a market value of $4.6B against $2.0B — 2.3× the size. Sonic Automotive, Inc. trades at the lower P/E: 9.9× against 44.7×. Valvoline grew revenue faster over the last twelve months: 16.1% against 2.01%. Valvoline has the higher net margin (5.17% vs 1.33%) and the lower return on invested capital (9.72% vs 10.1%). Across the 21 metrics below, Valvoline leads on 11 and Sonic Automotive, Inc. on 10.

Valuation

Metric SAH VVV Auto & Truck Dealerships median
P/E 9.87 44.66 15.49
P/S 0.13 2.33 0.24
P/B 1.86 10.96 1.45
Price to free cash flow n/m 33.75 10.17
EV/EBITDA 6.21 13.73 8.57
EV/Sales 0.26 3.10 0.47
Earnings yield 10.13% 2.24% 2.96%
Free cash flow yield (7.77%) 2.96% 2.14%

Profitability

Metric SAH VVV Auto & Truck Dealerships median
Gross margin 15.70% 38.28% 18.39%
Operating margin 3.23% 15.33% 3.69%
Net margin 1.33% 5.17% 1.20%
Free cash flow margin (0.99%) 6.89% 0.86%
Return on equity 19.35% 27.80% 11.73%
Return on assets 3.29% 3.36% 0.75%
Return on invested capital 10.12% 9.72% 6.38%

Growth

Metric SAH VVV Auto & Truck Dealerships median
Revenue growth (TTM) 2.01% 16.08% 0.29%
EPS growth (last fiscal year) (44.66%) 1.86% (0.89%)
Revenue growth, 5-year CAGR 9.18% 18.66% 9.44%
Net income growth, 5-year CAGR 0.00% (7.82%) 0.00%

Health

Metric SAH VVV Auto & Truck Dealerships median
Debt to equity 1.92 3.84 0.61
Current ratio 0.95 0.70 1.16
Net debt to EBITDA 3.82 2.01 1.24

Dividend

Metric SAH VVV Auto & Truck Dealerships median
Dividend yield 2.53% — 1.02%
Payout ratio 0.25 — 0.24

Size

Metric SAH VVV Auto & Truck Dealerships median
Market cap 1.99b 4.57b 2.03b

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