Financial Comparison: Group 1 Automotive (GPI) versus Its Competitors

Group 1 Automotive (NYSE:GPI) is one of 285 public companies in the “Specialty Retail” industry, but how does it contrast to its competitors? We will compare Group 1 Automotive to related companies based on the strength of its profitability, valuation, dividends, risk, institutional ownership, earnings and analyst recommendations.

Volatility and Risk

Group 1 Automotive has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Group 1 Automotive’s competitors have a beta of 1.91, indicating that their average stock price is 91% more volatile than the S&P 500.

Valuation and Earnings

This table compares Group 1 Automotive and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Group 1 Automotive	$22.57 billion	$325.20 million	8.52
Group 1 Automotive Competitors	$7.05 billion	$386.47 million	32.15

Group 1 Automotive has higher revenue, but lower earnings than its competitors. Group 1 Automotive is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Group 1 Automotive and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Group 1 Automotive	1.75%	14.91%	4.19%
Group 1 Automotive Competitors	-3.69%	-13.95%	3.18%

Dividends

Group 1 Automotive pays an annual dividend of $2.20 per share and has a dividend yield of 0.8%. Group 1 Automotive pays out 7.0% of its earnings in the form of a dividend. As a group, “Specialty Retail” companies pay a dividend yield of 2.1% and pay out 35.5% of their earnings in the form of a dividend. Group 1 Automotive has increased its dividend for 2 consecutive years.

Institutional & Insider Ownership

99.9% of Group 1 Automotive shares are owned by institutional investors. Comparatively, 51.6% of shares of all “Specialty Retail” companies are owned by institutional investors. 2.4% of Group 1 Automotive shares are owned by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Group 1 Automotive and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Group 1 Automotive	3	2	5	0	2.20
Group 1 Automotive Competitors	3666	15568	21600	588	2.46

Group 1 Automotive presently has a consensus target price of $328.30, indicating a potential upside of 21.97%. As a group, “Specialty Retail” companies have a potential upside of 6.41%. Given Group 1 Automotive’s higher probable upside, research analysts clearly believe Group 1 Automotive is more favorable than its competitors.

Summary

Group 1 Automotive competitors beat Group 1 Automotive on 8 of the 15 factors compared.

About Group 1 Automotive

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.