Group 1 Automotive (NYSE:GPI – Get Free Report) and Five Below (NASDAQ:FIVE – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.
Valuation and Earnings
This table compares Group 1 Automotive and Five Below”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Group 1 Automotive | $21.77 billion | 0.15 | $325.20 million | $31.60 | 8.64 |
| Five Below | $4.76 billion | 2.91 | $358.64 million | $11.14 | 22.62 |
Five Below has lower revenue, but higher earnings than Group 1 Automotive. Group 1 Automotive is trading at a lower price-to-earnings ratio than Five Below, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Group 1 Automotive and Five Below, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Group 1 Automotive | 3 | 2 | 5 | 0 | 2.20 |
| Five Below | 0 | 13 | 19 | 0 | 2.59 |
Group 1 Automotive currently has a consensus target price of $328.30, suggesting a potential upside of 20.31%. Five Below has a consensus target price of $300.20, suggesting a potential upside of 19.12%. Given Group 1 Automotive’s higher probable upside, research analysts plainly believe Group 1 Automotive is more favorable than Five Below.
Insider & Institutional Ownership
99.9% of Group 1 Automotive shares are held by institutional investors. 2.4% of Group 1 Automotive shares are held by company insiders. Comparatively, 1.0% of Five Below shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Group 1 Automotive has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Five Below has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.
Profitability
This table compares Group 1 Automotive and Five Below’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Group 1 Automotive | 1.75% | 14.91% | 4.19% |
| Five Below | 11.65% | 22.13% | 9.86% |
Summary
Five Below beats Group 1 Automotive on 8 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 Five Below
Five Below, Inc. operates as a specialty value retailer in the United States. The company offers range of accessories, which includes novelty socks, sunglasses, jewelry, scarves, gloves, hair accessories, athletic tops and bottoms, and t-shirts, as well as nail polish, lip gloss, fragrance, and branded cosmetics; and personalized living space products, such as lamps, posters, frames, fleece blankets, plush items, pillows, candles, incense, lighting, novelty décor, accent furniture, and related items, as well as provides storage options. It provides assortment of sports balls, team sports merchandise, and fitness accessories comprising hand weights, jump ropes, and gym balls; various games, such as board games, puzzles, collectibles, and toys, including remote control; and summer season sports, which includes pool, beach, and outdoor toys, as well as games and accessories. In addition, the company offers accessories for cell phones, tablets, audio, and computers, as well as cases, chargers, headphones, and other related items; and media products including books, video games, and DVDs. It also provides assortment of craft activity kits, and arts and crafts supplies, such as crayons, markers, and stickers; and school products comprising backpacks, fashion notebooks and journals, novelty pens and pencils, and locker accessories. Further, the company offers party products, which includes party goods, decorations, gag gifts, and greeting cards, as well as every day and special occasion merchandise; assortment of classic and novelty candy bars, movie-size box candy, seasonal-related candy, and gum and snack food products, as well as sells chilled drinks through coolers; and provides seasonally specific items used to celebrate and decorate for events. The company was formerly known as Cheap Holdings, Inc. and changed its name to Five Below, Inc. in August 2002. Five Below, Inc. was incorporated in 2002 and is headquartered in Philadelphia, Pennsylvania.
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