Contrasting Build-A-Bear Workshop (NYSE:BBW) and Asbury Automotive Group (NYSE:ABG)

Asbury Automotive Group (NYSE:ABG) and Build-A-Bear Workshop (NYSE:BBW) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, dividends, analyst recommendations and profitability.

Volatility and Risk

Asbury Automotive Group has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, Build-A-Bear Workshop has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Earnings & Valuation

This table compares Asbury Automotive Group and Build-A-Bear Workshop”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asbury Automotive Group	$18.00 billion	0.20	$492.00 million	$26.74	7.65
Build-A-Bear Workshop	$529.83 million	0.61	$52.20 million	$4.03	6.46

Asbury Automotive Group has higher revenue and earnings than Build-A-Bear Workshop. Build-A-Bear Workshop is trading at a lower price-to-earnings ratio than Asbury Automotive Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Asbury Automotive Group and Build-A-Bear Workshop’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Asbury Automotive Group	2.83%	12.72%	4.31%
Build-A-Bear Workshop	9.96%	29.66%	13.60%

Insider & Institutional Ownership

79.3% of Build-A-Bear Workshop shares are owned by institutional investors. 0.7% of Asbury Automotive Group shares are owned by company insiders. Comparatively, 4.0% of Build-A-Bear Workshop shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Asbury Automotive Group and Build-A-Bear Workshop, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asbury Automotive Group	1	6	2	0	2.11
Build-A-Bear Workshop	1	1	2	0	2.25

Asbury Automotive Group currently has a consensus target price of $237.83, suggesting a potential upside of 16.32%. Build-A-Bear Workshop has a consensus target price of $53.50, suggesting a potential upside of 105.41%. Given Build-A-Bear Workshop’s stronger consensus rating and higher probable upside, analysts clearly believe Build-A-Bear Workshop is more favorable than Asbury Automotive Group.

Summary

Build-A-Bear Workshop beats Asbury Automotive Group on 9 of the 13 factors compared between the two stocks.

About Asbury Automotive Group

Asbury Automotive Group, Inc., together with its subsidiaries, 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 services, 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 debt cancellation, prepaid maintenance, and disability and accident insurance. Asbury Automotive Group, Inc. was founded in 1996 and is based in Duluth, Georgia.

About Build-A-Bear Workshop

Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products in the United States, Canada, the United Kingdom, Ireland, and internationally. The company operates through three segments: Direct-to-Consumer, Commercial, and International Franchising. Its merchandise comprises various styles of plush products to be stuffed, pre-stuffed plush products, and sounds and scents that can be added to the stuffed animals, as well as range of clothing, shoes and accessories, and other toy and novelty items, including family sleepwear. The company operates its stores under the Build-A-Bear Workshop brand name; and sells its products through its e-commerce sites and third-party marketplace sites. Build-A-Bear Workshop, Inc. was founded in 1997 and is headquartered in Saint Louis, Missouri.