Contrasting Asbury Automotive Group (NYSE:ABG) & DICK’S Sporting Goods (NYSE:DKS)

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

Valuation & Earnings

This table compares DICK’S Sporting Goods and Asbury Automotive Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DICK’S Sporting Goods	$17.22 billion	0.64	$849.24 million	$9.31	13.29
Asbury Automotive Group	$17.98 billion	0.19	$492.00 million	$26.74	7.02

DICK’S Sporting Goods has higher earnings, but lower revenue 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.

Analyst Recommendations

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

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

DICK’S Sporting Goods currently has a consensus price target of $167.20, suggesting a potential upside of 35.10%. Asbury Automotive Group has a consensus price target of $237.83, suggesting a potential upside of 26.63%. Given DICK’S Sporting Goods’ stronger consensus rating and higher possible upside, analysts clearly believe DICK’S Sporting Goods is more favorable than Asbury Automotive Group.

Institutional & Insider Ownership

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

Profitability

This table compares DICK’S Sporting Goods and Asbury Automotive Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DICK’S Sporting Goods	3.97%	19.21%	6.07%
Asbury Automotive Group	2.83%	12.72%	4.31%

Volatility and Risk

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

Summary

DICK’S Sporting Goods beats Asbury Automotive Group on 12 of the 14 factors compared between the two stocks.

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.

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.