Financial Contrast: Build-A-Bear Workshop (NYSE:BBW) versus Asbury Automotive Group (NYSE:ABG)

Build-A-Bear Workshop (NYSE:BBW) and Asbury Automotive Group (NYSE:ABG) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

79.3% of Build-A-Bear Workshop shares are held by institutional investors. 4.0% of Build-A-Bear Workshop shares are held by insiders. Comparatively, 0.7% of Asbury Automotive Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Build-A-Bear Workshop has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Asbury Automotive Group has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares Build-A-Bear Workshop and Asbury Automotive Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Build-A-Bear Workshop	9.96%	29.66%	13.60%
Asbury Automotive Group	2.83%	12.72%	4.31%

Valuation and Earnings

This table compares Build-A-Bear Workshop and Asbury Automotive Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Build-A-Bear Workshop	$529.83 million	0.61	$52.20 million	$4.03	6.53
Asbury Automotive Group	$18.00 billion	0.19	$492.00 million	$26.74	6.99

Asbury Automotive Group has higher revenue and earnings than Build-A-Bear Workshop. Build-A-Bear Workshop is trading at a lower price-to-earnings ratio than Asbury Automotive Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings for Build-A-Bear Workshop and Asbury Automotive Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Build-A-Bear Workshop	1	1	2	0	2.25
Asbury Automotive Group	1	6	2	0	2.11

Build-A-Bear Workshop currently has a consensus target price of $53.50, indicating a potential upside of 103.37%. Asbury Automotive Group has a consensus target price of $237.83, indicating a potential upside of 27.31%. Given Build-A-Bear Workshop’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Build-A-Bear Workshop is more favorable than Asbury Automotive Group.

Summary

Build-A-Bear Workshop beats Asbury Automotive Group on 9 of the 13 factors compared between the two stocks.

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes and accessories, and other toy and novelty items, including family sleepwear. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce sites and third-party marketplace sites. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in Saint Louis, Missouri.

About Asbury Automotive Group

Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, and collision repair services. The company also provides finance and insurance products, including arranging vehicle financing through third parties; and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, prepaid maintenance, and disability and accident insurance. Asbury Automotive Group, Inc. was founded in 1996 and is based in Duluth, Georgia.