Head to Head Survey: Petco Health and Wellness (NASDAQ:WOOF) versus Asbury Automotive Group (NYSE:ABG)

Asbury Automotive Group (NYSE:ABG) and Petco Health and Wellness (NASDAQ:WOOF) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Valuation & Earnings

This table compares Asbury Automotive Group and Petco Health and Wellness”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asbury Automotive Group	$18.00 billion	0.17	$492.00 million	$26.74	6.46
Petco Health and Wellness	$5.97 billion	0.12	$9.07 million	$0.10	22.70

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Asbury Automotive Group and Petco Health and Wellness, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asbury Automotive Group	1	6	2	0	2.11
Petco Health and Wellness	2	5	1	1	2.11

Asbury Automotive Group currently has a consensus price target of $237.83, suggesting a potential upside of 37.58%. Petco Health and Wellness has a consensus price target of $3.42, suggesting a potential upside of 50.66%. Given Petco Health and Wellness’ higher probable upside, analysts clearly believe Petco Health and Wellness is more favorable than Asbury Automotive Group.

Profitability

This table compares Asbury Automotive Group and Petco Health and Wellness’ 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%
Petco Health and Wellness	0.51%	3.44%	0.78%

Risk and Volatility

Asbury Automotive Group has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Petco Health and Wellness has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

Summary

Asbury Automotive Group beats Petco Health and Wellness on 8 of the 12 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 Petco Health and Wellness

Petco Health and Wellness Company, Inc., operates as a health and wellness company, focuses on enhancing the lives of pets, pet parents, and its Petco partners in the United States, Mexico, and Puerto Rico. The company provides veterinary care, grooming, training, tele-health, and Vital Care and pet health insurance services, as well as veterinary services through Vetco mobile clinics. It also offers pet consumables, supplies, and services through its petco.com, petcoach.co, petinsurancequotes.com, and pupbox.com websites. The company offers its products under the WholeHearted, Reddy, and Well & Good brands. Petco Health and Wellness Company, Inc. was founded in 1965 and is headquartered in San Diego, California.