Rush Enterprises (NASDAQ:RUSHB) and Asbury Automotive Group (NYSE:ABG) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.

Earnings & Valuation

This table compares Rush Enterprises and Asbury Automotive Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rush Enterprises $4.71 billion 0.29 $172.12 million N/A N/A
Asbury Automotive Group $6.46 billion 0.20 $139.10 million $6.43 10.26

Rush Enterprises has higher earnings, but lower revenue than Asbury Automotive Group.

Insider & Institutional Ownership

9.0% of Rush Enterprises shares are held by institutional investors. 13.9% of Rush Enterprises shares are held by insiders. Comparatively, 1.9% of Asbury Automotive Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Rush Enterprises pays an annual dividend of $0.48 per share and has a dividend yield of 1.4%. Asbury Automotive Group does not pay a dividend.

Analyst Ratings

This is a summary of recent ratings and target prices for Rush Enterprises and Asbury Automotive Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rush Enterprises 0 0 0 0 N/A
Asbury Automotive Group 1 3 0 0 1.75

Asbury Automotive Group has a consensus price target of $73.00, suggesting a potential upside of 10.69%. Given Asbury Automotive Group’s higher possible upside, analysts plainly believe Asbury Automotive Group is more favorable than Rush Enterprises.

Profitability

This table compares Rush Enterprises and Asbury Automotive Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rush Enterprises 3.83% 12.85% 4.52%
Asbury Automotive Group 2.52% 37.83% 6.74%

Risk and Volatility

Rush Enterprises has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Asbury Automotive Group has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Summary

Rush Enterprises beats Asbury Automotive Group on 7 of the 12 factors compared between the two stocks.

About Rush Enterprises

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, Mitsubishi Fuso, IC Bus, or Blue Bird; provides new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance to its commercial vehicle customers. The company also offers equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services; and body, chassis upfit, and component installation services, as well as sells tires for use on commercial vehicles. It serves regional and national truck fleets, corporations, local governments, and owner operators. The company operates a network of centers located in the states of Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Tennessee, Texas, Utah, and Virginia. Rush Enterprises, Inc. was founded in 1965 and is headquartered in New Braunfels, Texas.

About Asbury Automotive Group

Asbury Automotive Group, Inc. 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, 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 insurance, prepaid maintenance, and credit life and disability insurance. As of February 06, 2018 the company owned and operated 95 new vehicle franchises representing 29 brands of automobiles at 81 dealership locations, and 24 collision centers in the United States. Asbury Automotive Group, Inc. was founded in 1995 and is headquartered in Duluth, Georgia.

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