Nextnrg (NASDAQ:NXXT – Get Free Report) and Sonic Automotive (NYSE:SAH – Get Free Report) are both small-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.
Volatility & Risk
Nextnrg has a beta of -0.57, indicating that its share price is 157% less volatile than the S&P 500. Comparatively, Sonic Automotive has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.
Profitability
This table compares Nextnrg and Sonic Automotive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Nextnrg | -62.85% | N/A | -295.04% |
| Sonic Automotive | 1.52% | 19.96% | 3.43% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Nextnrg | 0 | 0 | 0 | 0 | 0.00 |
| Sonic Automotive | 0 | 1 | 4 | 1 | 3.00 |
Sonic Automotive has a consensus price target of $74.80, indicating a potential upside of 27.67%. Given Sonic Automotive’s stronger consensus rating and higher probable upside, analysts plainly believe Sonic Automotive is more favorable than Nextnrg.
Valuation and Earnings
This table compares Nextnrg and Sonic Automotive”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Nextnrg | $27.77 million | 11.64 | -$10.47 million | ($6.67) | -0.43 |
| Sonic Automotive | $14.22 billion | 0.14 | $216.00 million | $6.18 | 9.48 |
Sonic Automotive has higher revenue and earnings than Nextnrg. Nextnrg is trading at a lower price-to-earnings ratio than Sonic Automotive, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
10.6% of Nextnrg shares are owned by institutional investors. Comparatively, 46.9% of Sonic Automotive shares are owned by institutional investors. 81.7% of Nextnrg shares are owned by company insiders. Comparatively, 42.7% of Sonic Automotive shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Summary
Sonic Automotive beats Nextnrg on 13 of the 15 factors compared between the two stocks.
About Nextnrg
NextNRG, Inc. engages in the provision of fuel delivery services. Its app-based interface provides customers with the ability to select the time and location of their fueling. It offers diesel, red diesel, and REC-90. The company was founded by Michael D. Farkas on March 28, 2019 and is headquartered in Miami, FL.
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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