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 $3.6B against $2.0B — 1.8× the size. Sonic Automotive, Inc. trades at the lower P/E: 10.2× against 36.2×. Valvoline grew revenue faster over the last twelve months: 16.1% against 5.25%. Valvoline has the higher net margin (5.17% vs 1.37%) and the lower return on invested capital (9.72% vs 10.2%). Both pay a dividend; Sonic Automotive, Inc. yields more (2.10% vs 1.55%). Across the 23 metrics below, Sonic Automotive, Inc. leads on 12 and Valvoline on 11.

Valuation

Metric SAH VVV Auto & Truck Dealerships median
P/E 10.16 36.15 16.07
P/S 0.13 1.88 0.43
P/B 2.00 8.87 2.36
Price to free cash flow 71.26 27.32 10.48
EV/EBITDA 6.33 11.77 8.50
EV/Sales 0.27 2.65 0.89
Earnings yield 9.84% 2.77% 2.72%
Free cash flow yield 1.40% 3.66% 2.83%

Profitability

Metric SAH VVV Auto & Truck Dealerships median
Gross margin 15.71% 38.28% 19.56%
Operating margin 3.30% 15.33% 3.73%
Net margin 1.37% 5.17% 1.07%
Free cash flow margin 0.19% 6.89% 2.34%
Return on equity 20.62% 27.80% 10.04%
Return on assets 3.44% 3.36% 0.61%
Return on invested capital 10.20% 9.72% 6.85%

Growth

Metric SAH VVV Auto & Truck Dealerships median
Revenue growth (TTM) 5.25% 16.08% 1.46%
EPS growth (last fiscal year) (44.66%) 1.86% —
Revenue growth, 5-year CAGR 9.18% 18.66% 10.46%
Net income growth, 5-year CAGR 0.00% (7.82%) 0.00%

Health

Metric SAH VVV Auto & Truck Dealerships median
Debt to equity 2.07 3.84 0.55
Current ratio 1.01 0.70 1.15
Net debt to EBITDA 3.82 2.01 1.34

Dividend

Metric SAH VVV Auto & Truck Dealerships median
Dividend yield 2.10% 1.55% 1.37%
Payout ratio 0.10 0.31 0.00

Size

Metric SAH VVV Auto & Truck Dealerships median
Market cap 1.98b 3.62b 2.10b

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