Worksport (NASDAQ:WKSP – Get Free Report) and Sonic Automotive (NYSE:SAH – Get Free Report) are both retail/wholesale companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Analyst Recommendations
This is a summary of recent ratings and price targets for Worksport and Sonic Automotive, as provided 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 369.96%. Sonic Automotive has a consensus price target of $74.71, indicating a potential downside of 9.10%. Given Worksport’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Worksport is more favorable than Sonic Automotive.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Worksport | $10.21 million | 1.52 | -$16.16 million | ($6.60) | -0.45 |
| Sonic Automotive | $14.22 billion | 0.20 | $216.00 million | $7.02 | 11.71 |
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.
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% |
Insider & Institutional 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 hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Worksport has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, Sonic Automotive has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.
Summary
Sonic Automotive beats Worksport on 11 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 Sonic Automotive
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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