Comparing Group 1 Automotive (GPI) and Its Peers

Group 1 Automotive (NYSE:GPI) is one of 285 public companies in the “Specialty Retail” industry, but how does it contrast to its rivals? We will compare Group 1 Automotive to related companies based on the strength of its profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Volatility & Risk

Group 1 Automotive has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Group 1 Automotive’s rivals have a beta of 1.91, suggesting that their average share price is 91% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Group 1 Automotive and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Group 1 Automotive	3	2	5	0	2.20
Group 1 Automotive Competitors	3666	15568	21600	588	2.46

Group 1 Automotive currently has a consensus price target of $328.30, suggesting a potential upside of 21.97%. As a group, “Specialty Retail” companies have a potential upside of 6.41%. Given Group 1 Automotive’s higher possible upside, equities analysts clearly believe Group 1 Automotive is more favorable than its rivals.

Profitability

This table compares Group 1 Automotive and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Group 1 Automotive	1.75%	14.91%	4.19%
Group 1 Automotive Competitors	-3.69%	-13.95%	3.18%

Dividends

Group 1 Automotive pays an annual dividend of $2.20 per share and has a dividend yield of 0.8%. Group 1 Automotive pays out 7.0% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.1% and pay out 35.5% of their earnings in the form of a dividend. Group 1 Automotive has raised its dividend for 2 consecutive years.

Earnings & Valuation

This table compares Group 1 Automotive and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Group 1 Automotive	$22.57 billion	$325.20 million	8.52
Group 1 Automotive Competitors	$7.05 billion	$386.47 million	32.15

Group 1 Automotive has higher revenue, but lower earnings than its rivals. Group 1 Automotive is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

99.9% of Group 1 Automotive shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 2.4% of Group 1 Automotive shares are owned by company insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Group 1 Automotive rivals beat Group 1 Automotive on 8 of the 15 factors compared.

About Group 1 Automotive

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.