Group 1 Automotive, Inc. (GPI) vs Valvoline (VVV)

Group 1 Automotive, Inc. and Valvoline are both Auto & Truck Dealerships companies. Valvoline is the larger, with a market value of $3.6B against $3.0B — 1.2× the size. Group 1 Automotive, Inc. trades at the lower P/E: 10.5× against 36.2×. Valvoline grew revenue faster over the last twelve months: 16.1% against 0.81%. Valvoline has the higher net margin (5.17% vs 1.30%) and the higher return on invested capital (9.72% vs 7.04%). Both pay a dividend; Valvoline yields more (1.55% vs 0.57%). Across the 23 metrics below, Valvoline leads on 12 and Group 1 Automotive, Inc. on 11.

Valuation

Metric GPI VVV Auto & Truck Dealerships median
P/E 10.50 36.15 16.07
P/S 0.13 1.88 0.43
P/B 1.01 8.87 2.36
Price to free cash flow 4.91 27.32 10.48
EV/EBITDA 7.50 11.77 8.50
EV/Sales 0.28 2.65 0.89
Earnings yield 9.52% 2.77% 2.72%
Free cash flow yield 20.36% 3.66% 2.83%

Profitability

Metric GPI VVV Auto & Truck Dealerships median
Gross margin 15.95% 38.28% 19.56%
Operating margin 3.13% 15.33% 3.73%
Net margin 1.30% 5.17% 1.07%
Free cash flow margin 2.73% 6.89% 2.34%
Return on equity 9.44% 27.80% 10.04%
Return on assets 2.80% 3.36% 0.61%
Return on invested capital 7.04% 9.72% 6.85%

Growth

Metric GPI VVV Auto & Truck Dealerships median
Revenue growth (TTM) 0.81% 16.08% 1.46%
EPS growth (last fiscal year) (31.43%) 1.86% —
Revenue growth, 5-year CAGR 16.32% 18.66% 10.46%
Net income growth, 5-year CAGR 3.08% (7.82%) 0.00%

Health

Metric GPI VVV Auto & Truck Dealerships median
Debt to equity 1.14 3.84 0.55
Current ratio 1.02 0.70 1.15
Net debt to EBITDA 4.26 2.01 1.34

Dividend

Metric GPI VVV Auto & Truck Dealerships median
Dividend yield 0.57% 1.55% 1.37%
Payout ratio 0.04 0.31 0.00

Size

Metric GPI VVV Auto & Truck Dealerships median
Market cap 2.95b 3.62b 2.10b

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