Asbury Automotive Group (NYSE:ABG) and America’s Car-Mart (NASDAQ:CRMT) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Profitability

This table compares Asbury Automotive Group and America’s Car-Mart’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Asbury Automotive Group 2.37% 37.44% 6.32%
America’s Car-Mart 6.42% 13.53% 6.88%

Earnings & Valuation

This table compares Asbury Automotive Group and America’s Car-Mart’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Asbury Automotive Group $6.46 billion 0.22 $139.10 million $6.43 10.89
America’s Car-Mart $612.20 million 0.88 $36.50 million N/A N/A

Asbury Automotive Group has higher revenue and earnings than America’s Car-Mart.

Risk and Volatility

Asbury Automotive Group has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, America’s Car-Mart has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Asbury Automotive Group and America’s Car-Mart, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Asbury Automotive Group 0 4 1 0 2.20
America’s Car-Mart 0 2 2 0 2.50

Asbury Automotive Group presently has a consensus price target of $70.80, indicating a potential upside of 1.14%. America’s Car-Mart has a consensus price target of $89.00, indicating a potential upside of 13.59%. Given America’s Car-Mart’s stronger consensus rating and higher possible upside, analysts clearly believe America’s Car-Mart is more favorable than Asbury Automotive Group.

Insider and Institutional Ownership

71.1% of America’s Car-Mart shares are held by institutional investors. 1.9% of Asbury Automotive Group shares are held by company insiders. Comparatively, 10.0% of America’s Car-Mart shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

America’s Car-Mart beats Asbury Automotive Group on 9 of the 13 factors compared between the two stocks.

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.

About America’s Car-Mart

America's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company primarily sells older model used vehicles and provides financing for its customers. As of June 28, 2018, it operated 140 dealerships. America's Car-Mart, Inc. was founded in 1981 and is based in Bentonville, Arkansas.

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