Comparing Asbury Automotive Group (NYSE:ABG) & Uxin (NASDAQ:UXIN)

Asbury Automotive Group (NYSE:ABG) and Uxin (NASDAQ:UXIN) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of current ratings for Asbury Automotive Group and Uxin, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asbury Automotive Group	1	6	2	0	2.11
Uxin	1	0	1	0	2.00

Asbury Automotive Group currently has a consensus target price of $214.00, suggesting a potential upside of 25.89%. Uxin has a consensus target price of $4.50, suggesting a potential upside of 383.66%. Given Uxin’s higher probable upside, analysts clearly believe Uxin is more favorable than Asbury Automotive Group.

Valuation & Earnings

This table compares Asbury Automotive Group and Uxin”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asbury Automotive Group	$18.00 billion	0.17	$492.00 million	$26.74	6.36
Uxin	$463.27 million	0.43	-$39.69 million	($0.28)	-3.32

Asbury Automotive Group has higher revenue and earnings than Uxin. Uxin is trading at a lower price-to-earnings ratio than Asbury Automotive Group, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

22.4% of Uxin shares are owned by institutional investors. 0.7% of Asbury Automotive Group shares are owned by company insiders. Comparatively, 62.9% of Uxin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Asbury Automotive Group has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Uxin has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Asbury Automotive Group and Uxin’s 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%
Uxin	-10.10%	N/A	-16.37%

Summary

Asbury Automotive Group beats Uxin on 10 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 Uxin

Uxin Limited, an investment holding company, engages in the retail sale of vehicles in China. The company operates an e-commerce platform for buying and selling used cars. It also offers used-car acquisition, inspection, reconditioning, warehousing, pre-sales and after-sales, and various car-related value-added products and services, as well as warranty and repair, delivery, and title transfers and vehicle registration services. Uxin Limited was incorporated in 2011 and is headquartered in Beijing, China.