Group 1 Automotive (NYSE:GPI – Get Free Report) and Tilly’s (NYSE:TLYS – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Group 1 Automotive and Tilly’s, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Group 1 Automotive | 3 | 2 | 5 | 0 | 2.20 |
| Tilly’s | 0 | 3 | 0 | 0 | 2.00 |
Group 1 Automotive currently has a consensus price target of $341.67, indicating a potential upside of 51.87%. Tilly’s has a consensus price target of $5.50, indicating a potential upside of 18.97%. Given Group 1 Automotive’s stronger consensus rating and higher probable upside, analysts clearly believe Group 1 Automotive is more favorable than Tilly’s.
Profitability
This table compares Group 1 Automotive and Tilly’s’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Group 1 Automotive | 1.31% | 15.66% | 4.43% |
| Tilly’s | 0.34% | 2.37% | 0.61% |
Volatility & Risk
Group 1 Automotive has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Tilly’s has a beta of 0.06, suggesting that its stock price is 94% less volatile than the S&P 500.
Earnings and Valuation
This table compares Group 1 Automotive and Tilly’s”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Group 1 Automotive | $22.57 billion | 0.12 | $325.20 million | $24.01 | 9.37 |
| Tilly’s | $553.59 million | 0.26 | -$17.45 million | $0.06 | 77.05 |
Group 1 Automotive has higher revenue and earnings than Tilly’s. Group 1 Automotive is trading at a lower price-to-earnings ratio than Tilly’s, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
99.9% of Group 1 Automotive shares are held by institutional investors. Comparatively, 76.4% of Tilly’s shares are held by institutional investors. 2.4% of Group 1 Automotive shares are held by company insiders. Comparatively, 26.4% of Tilly’s shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Group 1 Automotive beats Tilly’s on 11 of the 14 factors compared between the two stocks.
About Group 1 Automotive
Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.
About Tilly’s
Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.
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