Asbury Automotive Group (NYSE:ABG – Get Free Report) and Stitch Fix (NASDAQ:SFIX – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.
Volatility and Risk
Asbury Automotive Group has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Stitch Fix has a beta of 2.26, meaning that its stock price is 126% more volatile than the S&P 500.
Insider and Institutional Ownership
71.0% of Stitch Fix shares are owned by institutional investors. 0.7% of Asbury Automotive Group shares are owned by insiders. Comparatively, 16.1% of Stitch Fix shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Asbury Automotive Group | 1 | 6 | 2 | 0 | 2.11 |
| Stitch Fix | 1 | 4 | 1 | 0 | 2.00 |
Asbury Automotive Group presently has a consensus price target of $245.29, indicating a potential upside of 12.70%. Stitch Fix has a consensus price target of $5.12, indicating a potential upside of 28.93%. Given Stitch Fix’s higher possible upside, analysts clearly believe Stitch Fix is more favorable than Asbury Automotive Group.
Earnings and Valuation
This table compares Asbury Automotive Group and Stitch Fix”s gross 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 | 0.22 | $492.00 million | $26.74 | 8.14 |
| Stitch Fix | $1.33 billion | 0.40 | -$28.74 million | ($0.08) | -49.69 |
Asbury Automotive Group has higher revenue and earnings than Stitch Fix. Stitch Fix 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 Stitch Fix’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% |
| Stitch Fix | -1.43% | -9.35% | -3.78% |
Summary
Asbury Automotive Group beats Stitch Fix on 9 of the 14 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 Stitch Fix
Stitch Fix, Inc. sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.
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