Financial Comparison: Worksport (NASDAQ:WKSP) & Sonic Automotive (NYSE:SAH)

Worksport (NASDAQ:WKSPGet Free Report) and Sonic Automotive (NYSE:SAHGet Free Report) are both retail/wholesale companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, profitability, dividends, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Worksport and Sonic Automotive, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Worksport 0 0 3 0 3.00
Sonic Automotive 0 2 5 1 2.88

Worksport presently has a consensus price target of $14.00, indicating a potential upside of 376.19%. Sonic Automotive has a consensus price target of $74.71, indicating a potential downside of 7.37%. Given Worksport’s stronger consensus rating and higher probable upside, equities analysts clearly believe Worksport is more favorable than Sonic Automotive.

Institutional and Insider Ownership

16.1% of Worksport shares are held by institutional investors. Comparatively, 46.9% of Sonic Automotive shares are held by institutional investors. 8.0% of Worksport shares are held by insiders. Comparatively, 42.7% 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 will outperform the market over the long term.

Volatility & Risk

Worksport has a beta of 2, meaning that its stock price is 100% more volatile than the S&P 500. Comparatively, Sonic Automotive has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Profitability

This table compares Worksport and Sonic Automotive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Worksport -165.61% -92.59% -64.71%
Sonic Automotive 1.69% 19.42% 3.42%

Valuation and Earnings

This table compares Worksport and Sonic Automotive”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Worksport $8.48 million 1.80 -$16.16 million ($6.60) -0.45
Sonic Automotive $14.49 billion 0.19 $216.00 million $7.02 11.49

Sonic Automotive has higher revenue and earnings than Worksport. Worksport is trading at a lower price-to-earnings ratio than Sonic Automotive, indicating that it is currently the more affordable of the two stocks.

Summary

Sonic Automotive beats Worksport on 11 of the 15 factors compared between the two stocks.

About Worksport

(Get Free Report)

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 Sonic Automotive

(Get Free Report)

Sonic Automotive, Inc. operates as an automotive retailer in the United States. It operates in three segments, Franchised Dealerships, EchoPark, and Powersports. The Franchised Dealerships segment is involved in the sale of new and used cars and light trucks, and replacement parts; provision of vehicle maintenance, manufacturer warranty repair, and paint and collision repair services; and arrangement of extended warranties, service contracts, financing, insurance, and other aftermarket products for its guests. The EchoPark segment sells used cars and light trucks; and arranges finance and insurance product sales for its guests in pre-owned vehicle specialty retail locations. The Powersports Segment sells new and used powersports vehicles, such as motorcycles, and personal watercraft and all-terrain vehicles; and offers finance and insurance services. The company was incorporated in 1997 and is based in Charlotte, North Carolina.

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