Asbury Automotive Group (NYSE:ABG – Get Free Report) and AutoNation (NYSE:AN – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
94.6% of AutoNation shares are owned by institutional investors. 0.7% of Asbury Automotive Group shares are owned by company insiders. Comparatively, 1.4% of AutoNation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations and price targets for Asbury Automotive Group and AutoNation, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Asbury Automotive Group | 2 | 5 | 3 | 0 | 2.10 |
| AutoNation | 1 | 5 | 7 | 0 | 2.46 |
Asbury Automotive Group currently has a consensus target price of $222.88, suggesting a potential upside of 7.92%. AutoNation has a consensus target price of $228.20, suggesting a potential upside of 23.75%. Given AutoNation’s stronger consensus rating and higher possible upside, analysts plainly believe AutoNation is more favorable than Asbury Automotive Group.
Risk & Volatility
Asbury Automotive Group has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500. Comparatively, AutoNation has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500.
Profitability
This table compares Asbury Automotive Group and AutoNation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Asbury Automotive Group | 2.66% | 11.85% | 4.09% |
| AutoNation | 2.63% | 31.18% | 4.72% |
Earnings and Valuation
This table compares Asbury Automotive Group and AutoNation”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Asbury Automotive Group | $18.00 billion | 0.21 | $492.00 million | $25.06 | 8.24 |
| AutoNation | $27.63 billion | 0.21 | $649.10 million | $20.81 | 8.86 |
AutoNation has higher revenue and earnings than Asbury Automotive Group. Asbury Automotive Group is trading at a lower price-to-earnings ratio than AutoNation, indicating that it is currently the more affordable of the two stocks.
Summary
AutoNation beats Asbury Automotive Group on 12 of the 14 factors compared between the two stocks.
About Asbury Automotive Group
Asbury Automotive Group is a U.S. automotive retailer that operates franchised new- and used-vehicle dealerships. Its dealerships sell vehicles from a range of manufacturers and offer related services, including vehicle financing and insurance products, maintenance and repairs, parts sales, and collision repair. The company also operates Clicklane, a digital platform that lets customers research, purchase, finance, and arrange delivery of vehicles online. Asbury was founded in 1995 and has expanded through acquisitions, including its 2021 purchase of Larry H. Miller Dealerships.
About AutoNation
AutoNation, Inc. is a U.S. automotive retailer that sells new and used vehicles through a network of dealerships. Its stores offer vehicles from a range of manufacturers, along with related products and services. The company also provides vehicle maintenance and repair, parts, and collision-repair services. Its offerings include financing and insurance products, as well as online tools that support vehicle research and purchasing. Founded in 1996, AutoNation operates dealerships across the United States, with a presence concentrated in the Sun Belt.
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