Sonic Automotive (NYSE:SAH – Get Free Report) and Genesco (NYSE:GCO – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Sonic Automotive and Genesco, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Sonic Automotive | 2 | 4 | 4 | 0 | 2.20 |
| Genesco | 0 | 3 | 0 | 2 | 2.80 |
Sonic Automotive presently has a consensus target price of $98.88, suggesting a potential upside of 57.23%. Genesco has a consensus target price of $36.00, suggesting a potential upside of 3.54%. Given Sonic Automotive’s higher possible upside, research analysts clearly believe Sonic Automotive is more favorable than Genesco.
Insider & Institutional Ownership
Profitability
This table compares Sonic Automotive and Genesco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Sonic Automotive | 1.37% | 20.75% | 3.51% |
| Genesco | 1.71% | 3.14% | 1.19% |
Earnings and Valuation
This table compares Sonic Automotive and Genesco”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Sonic Automotive | $15.15 billion | 0.13 | $118.70 million | $6.27 | 10.03 |
| Genesco | $2.44 billion | 0.15 | $13.27 million | $3.84 | 9.05 |
Sonic Automotive has higher revenue and earnings than Genesco. Genesco is trading at a lower price-to-earnings ratio than Sonic Automotive, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Sonic Automotive has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Genesco has a beta of 1.81, indicating that its share price is 81% more volatile than the S&P 500.
Summary
Sonic Automotive beats Genesco on 9 of the 15 factors compared between the two stocks.
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.
About Genesco
Genesco Inc. operates as a retailer and wholesaler of footwear, apparel, and accessories in the United States, Puerto Rico, Canada, the United Kingdom, and the Republic of Ireland. The company operates through four segments: Journeys Group, Schuh Group, Johnston & Murphy Group, and Genesco Brands. The Journeys Group segment offers footwear and accessories through the Journeys, Journeys Kidz, and Little Burgundy retail chains, as well as through e-commerce and catalogs for young men, women, and children. Its Schuh Group segment operates Schuh retail footwear stores that offer casual and athletic footwear, as well as sells footwear through e-commerce. The Johnston & Murphy Group segment involved in the retail and e-commerce operations; and wholesale distribution of men’s dress and casual footwear, apparel, and accessories, as well as women’s footwear and accessories. Its Genesco Brands Group segment markets footwear under the Levi’s, Dockers, and G.H. Bass brands for men, women, and children, as well as designs and manufactures the STARTER brands footwear. The company operates through Journeys, Journeys Kidz, Schuh, Little Burgundy, and Johnston & Murphy brand names; and e-commerce websites, including journeys.com, journeyskidz.com, journeys.ca, schuh.co.uk, schuh.ie, schuh.eu, johnstonmurphy.com, littleburgundyshoes.com, johnstonmurphy.ca, nashvilleshoewarehouse.com, and dockersshoes.com. Genesco Inc. was incorporated in 1934 and is headquartered in Nashville, Tennessee.
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