Sonic Automotive vs National Vision

This page compares Sonic Automotive and National Vision Holdings Inc, examining business models, financial performance, and market context for both companies in a neutral, accessible way. Educational content, not financial advice.

This page compares Sonic Automotive and National Vision Holdings Inc, examining business models, financial performance, and market context for both companies in a neutral, accessible way. Educational ...

Comparison Snapshot

Key Financial Metrics

SAH

Metric

EYE

$2.13B

Market Cap

$2.16B

19.62%

Potential Profit

20.91%

Buy

Analyst Rating

Buy

Investment Analysis

Sonic Automotive

SAH

Pros

Adjusted EPS surged by 49% year-over-year in Q2 2025, indicating strong profitability growth.
Consolidated revenues reached a quarterly record of $3.7 billion, up 6% year-over-year, driven by both franchise and EchoPark segments.
Strategic acquisitions, including four Jaguar Land Rover dealerships, have expanded luxury brand portfolio and increased potential annualized revenues by approximately $500 million.

Considerations

Reported a net loss in Q2 2025 primarily due to a significant $172.4 million non-cash pre-tax franchise asset impairment charge.
Stock price has experienced volatility recently, dropping over 18% in one month despite strong longer-term performance.
Despite recent growth, some analysts view the stock as currently overvalued compared to its fair value.

National Vision

EYE

Pros

National Vision operates in the resilient optical retail sector, benefiting from steady demand for eyewear and vision care products.
The company has pursued growth strategies through store expansions and enhancing digital sales channels to capture broader market share.
Strong brand recognition in affordable eyewear positions it well to serve price-sensitive consumers and capitalize on demographic trends.

Considerations

Exposure to competitive pressures from both online retailers and traditional optical chains may limit pricing power and margins.
Economic fluctuations and discretionary consumer spending can impact sales of non-essential eyewear products.
Regulatory uncertainties in healthcare and vision insurance reimbursement systems pose execution and profitability risks.

About The Companies

Sonic Automotive (SAH)

Sonic Automotive Inc (SAH) is a US-based automotive retailer that operates a network of franchised new-vehicle dealerships, used-car outlets and collision repair centres. With a market capitalisation around $2.65 billion, its earnings are driven by vehicle sales, after-sales service, parts and finance & insurance packages. Investors should note Sonic’s exposure to the cyclical auto market, including new-car supply, consumer demand and trends in the used-car segment, which can materially affect margins and cash flow. Interest-rate moves and credit availability influence retail finance volumes, while manufacturer relationships and inventory management are operationally important. The company has opportunities from service and used-vehicle sales, but faces competition, margin pressure and macroeconomic sensitivity. This summary is for educational purposes only and not personal investment advice; values can rise or fall, past performance is no guarantee of future results, and investors should assess suitability for their circumstances.

National Vision (EYE)

National Vision Holdings Inc. is one of the largest optical retailers in the United States, offering a wide range of eye care products and services. Operating through well-known brands like America's Best Contacts & Eyeglasses and Eyeglass World, the company has a significant physical presence with over 1,200 stores across the country. It provides customers with affordable eyeglasses, contact lenses, and accessible eye exams. In addition to its brick-and-mortar locations, National Vision has developed its e-commerce capabilities, allowing customers to purchase products and book appointments online. For investors, National Vision represents a major player in the consumer health and retail space, focusing on a non-discretionary need. As with any investment, the company's value can be influenced by market competition, consumer spending habits, and operational efficiency. The value of investments can go down as well as up.

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Comparison Snapshot