Analyzing Asbury Automotive Group (NYSE:ABG) and DICK’S Sporting Goods (NYSE:DKS)

Asbury Automotive Group (NYSE:ABG) and DICK’S Sporting Goods (NYSE:DKS) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Profitability

This table compares Asbury Automotive Group and DICK’S Sporting Goods’ 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%
DICK’S Sporting Goods	3.97%	19.21%	6.07%

Analyst Ratings

This is a summary of current ratings and recommmendations for Asbury Automotive Group and DICK’S Sporting Goods, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asbury Automotive Group	1	6	2	0	2.11
DICK’S Sporting Goods	3	9	11	0	2.35

Asbury Automotive Group presently has a consensus target price of $237.83, suggesting a potential upside of 31.23%. DICK’S Sporting Goods has a consensus target price of $167.20, suggesting a potential upside of 26.35%. Given Asbury Automotive Group’s higher probable upside, research analysts plainly believe Asbury Automotive Group is more favorable than DICK’S Sporting Goods.

Earnings and Valuation

This table compares Asbury Automotive Group and DICK’S Sporting Goods”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	0.18	$492.00 million	$26.74	6.78
DICK’S Sporting Goods	$17.22 billion	0.68	$849.24 million	$9.31	14.21

DICK’S Sporting Goods has lower revenue, but higher earnings than Asbury Automotive Group. Asbury Automotive Group is trading at a lower price-to-earnings ratio than DICK’S Sporting Goods, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Asbury Automotive Group has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, DICK’S Sporting Goods has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Institutional and Insider Ownership

89.8% of DICK’S Sporting Goods shares are held by institutional investors. 0.7% of Asbury Automotive Group shares are held by insiders. Comparatively, 28.9% of DICK’S Sporting Goods shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

DICK’S Sporting Goods beats Asbury Automotive Group on 11 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 DICK’S Sporting Goods

DICK’s Sporting Goods, Inc. engages in the retailing of an extensive assortment of authentic sports equipment, apparel, footwear, and accessories. It also offers its products both online and through mobile applications. The company was founded by Richard T. Stack in 1948 and is headquartered in Coraopolis, PA.