Reviewing Asbury Automotive Group (NYSE:ABG) & Outdoor (NASDAQ:POWW)

Asbury Automotive Group (NYSE:ABG – Get Free Report) and Outdoor (NASDAQ:POWW – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends and valuation.

Valuation & Earnings

This table compares Asbury Automotive Group and Outdoor”s gross 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 0.17 $492.00 million $26.74 6.46
Outdoor $53.75 million 4.86 -$3.54 million $0.03 75.00

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

Profitability

This table compares Asbury Automotive Group and Outdoor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Asbury Automotive Group 2.83% 12.72% 4.31%
Outdoor 12.08% 1.90% 1.67%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Asbury Automotive Group and Outdoor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Asbury Automotive Group 1 6 2 0 2.11
Outdoor 0 1 2 1 3.00

Asbury Automotive Group presently has a consensus target price of $237.83, indicating a potential upside of 37.58%. Outdoor has a consensus target price of $2.62, indicating a potential upside of 16.67%. Given Asbury Automotive Group’s higher probable upside, equities research analysts plainly believe Asbury Automotive Group is more favorable than Outdoor.

Institutional and Insider Ownership

26.4% of Outdoor shares are held by institutional investors. 0.7% of Asbury Automotive Group shares are held by company insiders. Comparatively, 28.1% of Outdoor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Asbury Automotive Group has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500. Comparatively, Outdoor has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Summary

Outdoor beats Asbury Automotive Group on 8 of the 14 factors compared between the two stocks.

About Asbury Automotive Group

(Get Free Report)

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.

About Outdoor

(Get Free Report)

AMMO, Inc. designs, produces, and markets ammunition and ammunition component products for sport and recreational shooters, hunters, individuals seeking home or personal protection, manufacturers, and law enforcement and military agencies. The company's products include STREAK Visual Ammunition that enables shooters to see the path of the bullets fired by them; and Stelth Subsonic ammunition primarily for suppressed firearms. It also owns and operates GunBroker.com, an auction site that supports the lawful sale of firearms, ammunition, and hunting/shooting accessories. In addition, the company's products comprises of armor piercing and hard armor piercing incendiary precision ammunition; and ammunition casings for pistol ammunition through large rifle ammunition. The company has a license agreement with Jeff Rann's ammunition for game hunting. AMMO, Inc. was founded in 2016 and is based in Scottsdale, Arizona.

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