Asbury Automotive Group (NYSE:ABG – Get Free Report) and O’Reilly Automotive (NASDAQ:ORLY – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.
Insider & Institutional Ownership
85.0% of O’Reilly Automotive shares are owned by institutional investors. 0.7% of Asbury Automotive Group shares are owned by insiders. Comparatively, 0.8% of O’Reilly Automotive shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Asbury Automotive Group and O’Reilly Automotive”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Asbury Automotive Group | $17.59 billion | 0.21 | $492.00 million | $25.06 | 8.20 |
| O’Reilly Automotive | $17.78 billion | 4.05 | $2.54 billion | $3.26 | 27.52 |
O’Reilly Automotive has higher revenue and earnings than Asbury Automotive Group. Asbury Automotive Group is trading at a lower price-to-earnings ratio than O’Reilly Automotive, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Asbury Automotive Group has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, O’Reilly Automotive has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.
Profitability
This table compares Asbury Automotive Group and O’Reilly Automotive’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% |
| O’Reilly Automotive | 14.27% | -188.24% | 15.83% |
Analyst Ratings
This is a breakdown of recent ratings for Asbury Automotive Group and O’Reilly Automotive, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Asbury Automotive Group | 2 | 5 | 3 | 0 | 2.10 |
| O’Reilly Automotive | 0 | 3 | 16 | 1 | 2.90 |
Asbury Automotive Group presently has a consensus price target of $222.88, suggesting a potential upside of 8.47%. O’Reilly Automotive has a consensus price target of $108.00, suggesting a potential upside of 20.38%. Given O’Reilly Automotive’s stronger consensus rating and higher possible upside, analysts plainly believe O’Reilly Automotive is more favorable than Asbury Automotive Group.
Summary
O’Reilly Automotive beats Asbury Automotive Group on 12 of the 15 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 O’Reilly Automotive
O’Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools and accessories. Its products serve both do-it-yourself customers maintaining their own vehicles and professional repair shops. The company also offers services such as battery testing, check-engine-light code reading and parts installation assistance. Its operations include retail stores and distribution centers that support customers and professional service providers. Founded in 1957 by Charles F. O’Reilly and his son Charles H. O’Reilly, the company opened its first store in Springfield, Missouri.
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