Critical Review: Uxin (NASDAQ:UXIN) versus Asbury Automotive Group (NYSE:ABG)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Uxin and Asbury Automotive Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Uxin 1 0 1 0 2.00
Asbury Automotive Group 2 5 2 0 2.00

Uxin currently has a consensus target price of $4.50, indicating a potential upside of 429.04%. Asbury Automotive Group has a consensus target price of $214.00, indicating a potential upside of 23.91%. Given Uxin’s higher probable upside, research analysts plainly believe Uxin is more favorable than Asbury Automotive Group.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Uxin $463.27 million 0.40 -$39.69 million ($0.28) -3.04
Asbury Automotive Group $18.00 billion 0.17 $492.00 million $26.74 6.46

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.

Risk & Volatility

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

Institutional & Insider Ownership

22.4% of Uxin shares are owned by institutional investors. 62.9% of Uxin shares are owned by company insiders. Comparatively, 0.7% of Asbury Automotive Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Uxin -10.10% N/A -16.37%
Asbury Automotive Group 2.83% 12.72% 4.31%

Summary

Asbury Automotive Group beats Uxin on 9 of the 13 factors compared between the two stocks.

About Uxin

(Get Free Report)

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.

About Asbury Automotive Group

(Get Free Report)

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.

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