Head-To-Head Contrast: Asbury Automotive Group (NYSE:ABG) & Floor & Decor (NYSE:FND)
by Tristan Rich · The Markets DailyFloor & Decor (NYSE:FND – Get Free Report) and Asbury Automotive Group (NYSE:ABG – Get Free Report) are both mid-cap consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
Profitability
This table compares Floor & Decor and Asbury Automotive Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Floor & Decor | 4.93% | 8.20% | 3.58% |
| Asbury Automotive Group | 2.83% | 12.74% | 4.30% |
Valuation & Earnings
This table compares Floor & Decor and Asbury Automotive Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Floor & Decor | $4.68 billion | 1.31 | $208.65 million | $2.15 | 26.41 |
| Asbury Automotive Group | $18.00 billion | 0.24 | $492.00 million | $26.74 | 8.62 |
Asbury Automotive Group has higher revenue and earnings than Floor & Decor. Asbury Automotive Group is trading at a lower price-to-earnings ratio than Floor & Decor, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Floor & Decor and Asbury Automotive Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Floor & Decor | 3 | 12 | 5 | 0 | 2.10 |
| Asbury Automotive Group | 1 | 6 | 2 | 0 | 2.11 |
Floor & Decor presently has a consensus price target of $59.42, suggesting a potential upside of 4.64%. Asbury Automotive Group has a consensus price target of $249.57, suggesting a potential upside of 8.29%. Given Asbury Automotive Group’s stronger consensus rating and higher possible upside, analysts clearly believe Asbury Automotive Group is more favorable than Floor & Decor.
Risk and Volatility
Floor & Decor has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Asbury Automotive Group has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.
Summary
Asbury Automotive Group beats Floor & Decor on 7 of the 12 factors compared between the two stocks.
About Floor & Decor
Floor & Decor Holdings, Inc. engages in the retail of hard surface flooring and related accessories. It provides wood, stone, and flooring products. Its products include vinyl, laminate, and tiles with materials installation for living rooms, kitchen, bathrooms, and walls. The company was founded by George Vincent West in 2000 and is headquartered in Atlanta, GA.
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.