Petco Health and Wellness (NASDAQ:WOOF – Get Free Report) and Asbury Automotive Group (NYSE:ABG – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Profitability
This table compares Petco Health and Wellness and Asbury Automotive Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Petco Health and Wellness | 0.51% | 3.44% | 0.78% |
| Asbury Automotive Group | 2.83% | 12.72% | 4.31% |
Risk and Volatility
Petco Health and Wellness has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500. Comparatively, Asbury Automotive Group has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Petco Health and Wellness | 2 | 5 | 1 | 1 | 2.11 |
| Asbury Automotive Group | 1 | 6 | 2 | 0 | 2.11 |
Petco Health and Wellness currently has a consensus target price of $3.42, indicating a potential upside of 50.66%. Asbury Automotive Group has a consensus target price of $237.83, indicating a potential upside of 37.58%. Given Petco Health and Wellness’ higher probable upside, equities analysts plainly believe Petco Health and Wellness is more favorable than Asbury Automotive Group.
Valuation and Earnings
This table compares Petco Health and Wellness and Asbury Automotive Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Petco Health and Wellness | $5.97 billion | 0.12 | $9.07 million | $0.10 | 22.70 |
| Asbury Automotive Group | $18.00 billion | 0.17 | $492.00 million | $26.74 | 6.46 |
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.
Summary
Asbury Automotive Group beats Petco Health and Wellness on 8 of the 12 factors compared between the two stocks.
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.
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.
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