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

Dividends

Rush Enterprises pays an annual dividend of $0.48 per share and has a dividend yield of 1.3%. Asbury Automotive Group does not pay a dividend.

Volatility and Risk

Asbury Automotive Group has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Rush Enterprises has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Asbury Automotive Group and Rush Enterprises, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Asbury Automotive Group 0 4 0 0 2.00
Rush Enterprises 0 0 0 0 N/A

Asbury Automotive Group presently has a consensus price target of $70.50, indicating a potential upside of 2.26%. Given Asbury Automotive Group’s higher probable upside, equities research analysts clearly believe Asbury Automotive Group is more favorable than Rush Enterprises.

Earnings and Valuation

This table compares Asbury Automotive Group and Rush Enterprises’ 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 0.21 $139.10 million $6.43 10.72
Rush Enterprises $4.71 billion 0.32 $172.12 million N/A N/A

Rush Enterprises has lower revenue, but higher earnings than Asbury Automotive Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Asbury Automotive Group 2.52% 37.83% 6.74%
Rush Enterprises 3.83% 12.99% 4.62%

Insider and Institutional Ownership

9.9% of Rush Enterprises shares are owned by institutional investors. 1.9% of Asbury Automotive Group shares are owned by insiders. Comparatively, 13.9% of Rush Enterprises shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Rush Enterprises beats Asbury Automotive Group on 7 of the 12 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 Rush Enterprises

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, Mitsubishi Fuso, IC Bus, or Blue Bird; provides new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance to its commercial vehicle customers. The company also offers equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services; and body, chassis upfit, and component installation services, as well as sells tires for use on commercial vehicles. It serves regional and national truck fleets, corporations, local governments, and owner operators. The company operates a network of centers located in the states of Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Tennessee, Texas, Utah, and Virginia. Rush Enterprises, Inc. was founded in 1965 and is headquartered in New Braunfels, Texas.

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