Asbury Automotive Group, Inc. (ABG) vs Lithia Motors, Inc. (LAD)

Asbury Automotive Group, Inc. and Lithia Motors, Inc. are both Auto & Truck Dealerships companies. Lithia Motors, Inc. is the larger, with a market value of $6.8B against $3.2B — 2.1× the size. Asbury Automotive Group, Inc. trades at the lower P/E: 6.9× against 10.5×. Asbury Automotive Group, Inc. grew revenue faster over the last twelve months: 4.13% against 2.10%. Asbury Automotive Group, Inc. has the higher net margin (2.83% vs 1.88%) and the higher return on invested capital (6.66% vs 6.20%). Across the 21 metrics below, Asbury Automotive Group, Inc. leads on 18 and Lithia Motors, Inc. on 3.

Valuation

Metric ABG LAD Auto & Truck Dealerships median
P/E 6.91 10.49 16.07
P/S 0.19 0.19 0.43
P/B 0.86 1.11 2.36
Price to free cash flow 6.75 n/m 10.48
EV/EBITDA 7.26 8.22 8.50
EV/Sales 0.38 0.43 0.89
Earnings yield 14.47% 9.53% 2.72%
Free cash flow yield 14.82% (6.74%) 2.83%

Profitability

Metric ABG LAD Auto & Truck Dealerships median
Gross margin 17.11% 15.17% 19.56%
Operating margin 4.35% 4.08% 3.73%
Net margin 2.83% 1.88% 1.07%
Free cash flow margin 2.79% (1.26%) 2.34%
Return on equity 13.23% 10.63% 10.04%
Return on assets 4.73% 2.83% 0.61%
Return on invested capital 6.66% 6.20% 6.85%

Growth

Metric ABG LAD Auto & Truck Dealerships median
Revenue growth (TTM) 4.13% 2.10% 1.46%
EPS growth (last fiscal year) 16.88% 9.01% —
Revenue growth, 5-year CAGR 20.34% 23.45% 10.46%
Net income growth, 5-year CAGR 14.10% 11.75% 0.00%

Health

Metric ABG LAD Auto & Truck Dealerships median
Debt to equity 0.88 1.48 0.55
Current ratio 0.91 1.00 1.15
Net debt to EBITDA 3.53 4.71 1.34

Dividend

Metric ABG LAD Auto & Truck Dealerships median
Dividend yield — 0.66% 1.37%
Payout ratio 0.00 0.04 0.00

Size

Metric ABG LAD Auto & Truck Dealerships median
Market cap 3.23b 6.81b 2.10b

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