Analyzing Floor & Decor (NYSE:FND) and Asbury Automotive Group (NYSE:ABG)

Asbury Automotive Group (NYSE:ABG) and Floor & Decor (NYSE:FND) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Earnings and Valuation

This table compares Asbury Automotive Group and Floor & Decor”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asbury Automotive Group	$17.98 billion	0.21	$492.00 million	$26.74	8.02
Floor & Decor	$4.68 billion	1.44	$208.65 million	$2.15	29.12

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.

Risk and Volatility

Asbury Automotive Group has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Floor & Decor has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Asbury Automotive Group and Floor & Decor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asbury Automotive Group	1	6	2	0	2.11
Floor & Decor	3	12	5	0	2.10

Asbury Automotive Group currently has a consensus target price of $246.71, indicating a potential upside of 15.09%. Floor & Decor has a consensus target price of $59.42, indicating a potential downside of 5.10%. Given Asbury Automotive Group’s stronger consensus rating and higher possible upside, research analysts clearly believe Asbury Automotive Group is more favorable than Floor & Decor.

Profitability

This table compares Asbury Automotive Group and Floor & Decor’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%
Floor & Decor	4.93%	8.20%	3.58%

Summary

Asbury Automotive Group beats Floor & Decor on 7 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 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.