Casey’s General Stores (NASDAQ: CASY) and Asbury Automotive Group (NYSE:ABG) are both retail/wholesale companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Institutional and Insider Ownership
92.7% of Casey’s General Stores shares are owned by institutional investors. 1.3% of Casey’s General Stores shares are owned by company insiders. Comparatively, 1.9% of Asbury Automotive Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This table compares Casey’s General Stores and Asbury Automotive Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Casey’s General Stores||3.79%||11.61%||4.24%|
|Asbury Automotive Group||2.23%||38.22%||6.02%|
Earnings & Valuation
This table compares Casey’s General Stores and Asbury Automotive Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Casey’s General Stores||$8.39 billion||0.47||$317.90 million||$3.81||27.58|
|Asbury Automotive Group||$6.46 billion||0.22||$139.10 million||$6.43||10.66|
Casey’s General Stores has higher revenue and earnings than Asbury Automotive Group. Asbury Automotive Group is trading at a lower price-to-earnings ratio than Casey’s General Stores, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Casey’s General Stores has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Asbury Automotive Group has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.
Casey’s General Stores pays an annual dividend of $1.04 per share and has a dividend yield of 1.0%. Asbury Automotive Group does not pay a dividend. Casey’s General Stores pays out 27.3% of its earnings in the form of a dividend. Casey’s General Stores has raised its dividend for 15 consecutive years.
This is a breakdown of recent ratings and target prices for Casey’s General Stores and Asbury Automotive Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Casey’s General Stores||0||6||5||0||2.45|
|Asbury Automotive Group||1||3||1||0||2.00|
Casey’s General Stores currently has a consensus target price of $123.25, indicating a potential upside of 17.29%. Asbury Automotive Group has a consensus target price of $65.20, indicating a potential downside of 4.89%. Given Casey’s General Stores’ stronger consensus rating and higher possible upside, analysts clearly believe Casey’s General Stores is more favorable than Asbury Automotive Group.
Casey’s General Stores beats Asbury Automotive Group on 11 of the 17 factors compared between the two stocks.
About Casey’s General Stores
Casey's General Stores, Inc., together with its subsidiaries, operates convenience stores under the Casey's and Casey's General Store names. The company's stores offer a selection of food, including freshly prepared foods, such as pizza, donuts, and sandwiches; beverage and tobacco products; health and beauty aids; automotive products; school supplies, housewares, and pet supplies; and other nonfood items. Its stores also offer fuel for sale on a self-service basis. In addition, the company operates two stores under the Tobacco City name primarily selling tobacco products; and one grocery store. As of April 13, 2018, it operated approximately 2,000 stores in 16 Midwestern states. Casey's General Stores, Inc. was founded in 1959 and is headquartered in Ankeny, Iowa.
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.
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