Asbury Automotive Group (NYSE:ABG – Get Free Report) and Murphy USA (NYSE:MUSA – Get Free Report) are both mid-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Risk and Volatility
Asbury Automotive Group has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Murphy USA has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.
Institutional & Insider Ownership
80.8% of Murphy USA shares are held by institutional investors. 0.7% of Asbury Automotive Group shares are held by company insiders. Comparatively, 9.0% of Murphy USA shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Asbury Automotive Group and Murphy USA, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Asbury Automotive Group | 2 | 5 | 3 | 0 | 2.10 |
| Murphy USA | 0 | 5 | 6 | 0 | 2.55 |
Asbury Automotive Group currently has a consensus price target of $220.88, suggesting a potential upside of 11.69%. Murphy USA has a consensus price target of $606.33, suggesting a potential upside of 13.21%. Given Murphy USA’s stronger consensus rating and higher probable upside, analysts clearly believe Murphy USA is more favorable than Asbury Automotive Group.
Profitability
This table compares Asbury Automotive Group and Murphy USA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Asbury Automotive Group | 2.66% | 11.94% | 4.08% |
| Murphy USA | 2.85% | 92.81% | 13.36% |
Valuation & Earnings
This table compares Asbury Automotive Group and Murphy USA”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 | 0.20 | $492.00 million | $25.06 | 7.89 |
| Murphy USA | $23.26 billion | 0.43 | $470.60 million | $35.67 | 15.02 |
Asbury Automotive Group has higher earnings, but lower revenue than Murphy USA. Asbury Automotive Group is trading at a lower price-to-earnings ratio than Murphy USA, indicating that it is currently the more affordable of the two stocks.
Summary
Murphy USA beats Asbury Automotive Group on 12 of the 14 factors compared between the two stocks.
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.
About Murphy USA
Murphy USA Inc. engages in marketing of retail motor fuel products and convenience merchandise. The company operates retail stores under the Murphy USA, Murphy Express, and QuickChek brands, as well as operates non-fuel convenience stores. It operates retail gasoline stores principally in the Southeast, Southwest, and Midwest United States. Murphy USA Inc. was founded in 1996 and is headquartered in El Dorado, Arkansas.
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