Group 1 Automotive (NYSE: GPI) is one of 20 publicly-traded companies in the “Automotive dealers & gasoline service stations” industry, but how does it contrast to its rivals? We will compare Group 1 Automotive to related businesses based on the strength of its valuation, dividends, profitability, analyst recommendations, earnings, institutional ownership and risk.
Institutional and Insider Ownership
62.1% of shares of all “Automotive dealers & gasoline service stations” companies are held by institutional investors. 6.1% of Group 1 Automotive shares are held by insiders. Comparatively, 16.5% of shares of all “Automotive dealers & gasoline service stations” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Group 1 Automotive has a beta of 1.75, suggesting that its stock price is 75% more volatile than the S&P 500. Comparatively, Group 1 Automotive’s rivals have a beta of 9.98, suggesting that their average stock price is 898% more volatile than the S&P 500.
Earnings and Valuation
This table compares Group 1 Automotive and its rivals revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Group 1 Automotive||$11.12 billion||$213.44 million||8.44|
|Group 1 Automotive Competitors||$8.01 billion||$220.42 million||12.20|
Group 1 Automotive has higher revenue, but lower earnings than its rivals. Group 1 Automotive is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Group 1 Automotive pays an annual dividend of $1.04 per share and has a dividend yield of 1.6%. Group 1 Automotive pays out 13.5% of its earnings in the form of a dividend. As a group, “Automotive dealers & gasoline service stations” companies pay a dividend yield of 1.6% and pay out 20.5% of their earnings in the form of a dividend. Group 1 Automotive has raised its dividend for 8 consecutive years. Group 1 Automotive is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
This is a summary of current ratings and recommmendations for Group 1 Automotive and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Group 1 Automotive||1||7||1||0||2.00|
|Group 1 Automotive Competitors||115||620||667||29||2.43|
Group 1 Automotive currently has a consensus price target of $81.86, suggesting a potential upside of 25.53%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 13.74%. Given Group 1 Automotive’s higher probable upside, analysts clearly believe Group 1 Automotive is more favorable than its rivals.
This table compares Group 1 Automotive and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Group 1 Automotive||1.89%||15.85%||3.45%|
|Group 1 Automotive Competitors||3.22%||33.52%||3.60%|
Group 1 Automotive rivals beat Group 1 Automotive on 11 of the 15 factors compared.
About Group 1 Automotive
Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry. It sells new and used cars, light trucks, and vehicle parts; arranges vehicle financing; sells service and insurance contracts; and provides automotive maintenance and repair services. The company has operations primarily in the metropolitan areas of Alabama, California, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New Mexico, Oklahoma, South Carolina, and Texas in the United States; 28 towns in the United Kingdom; and in the metropolitan markets of Sao Paulo, Parana, Mato Grosso do Sul, and Santa Catarina, Brazil. As of February 15, 2018, it owned and operated 230 franchises, 175 dealership locations, and 48 collision centers that offer 32 brands of automobiles. The company was founded in 1995 and is headquartered in Houston, Texas.
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