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 $6.5B against $3.1B — 2.1× the size. Asbury Automotive Group, Inc. trades at the lower P/E: 6.3× against 9.8×. 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 19 and Lithia Motors, Inc. on 2.

Valuation

Metric ABG LAD Auto & Truck Dealerships median
P/E 6.35 9.79 15.92
P/S 0.17 0.18 0.27
P/B 0.79 1.03 2.00
Price to free cash flow 6.20 n/m 10.69
EV/EBITDA 6.96 7.97 8.59
EV/Sales 0.36 0.42 0.68
Earnings yield 15.76% 10.22% 3.16%
Free cash flow yield 16.13% (7.23%) 2.80%

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% 1.18%
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% 0.75%
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% 3.12%
EPS growth (last fiscal year) 16.88% 9.01% 2.35%
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 — 0.80% 1.03%
Payout ratio — 0.08 0.24

Size

Metric ABG LAD Auto & Truck Dealerships median
Market cap 3.05b 6.49b 2.14b

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