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ABG vs GPI
Which Stock Would AI Choose? Asbury Automotive Group (ABG) vs. Group 1 Automotive (GPI) Stock Comparison
Key Takeaways
- Asbury Automotive Group (ABG) delivered record full-year 2025 revenue of $18 billion, with a stronger net profit margin of approximately 3.05%, reflecting superior operational efficiency in its U.S.-focused dealership network.
- Group 1 Automotive (GPI) generated record full-year 2025 revenue of $22.6 billion — a 13.2% year-over-year increase — supported by its diversified U.S. and U.K. footprint and an all-time high in parts and service gross profit of $1.6 billion.
- ABG trades at a notably lower trailing P/E (price-to-earnings) ratio of roughly 8.0 compared to GPI's approximately 12.8, though GPI offers a dividend yield of about 0.66% while ABG does not pay a dividend.
- Both companies executed aggressive share buybacks in 2025 — ABG repurchased $100 million in shares while GPI repurchased approximately 10.1% of its outstanding shares for $555 million.
- GPI faces near-term headwinds from its ongoing U.K. restructuring, including $192.8 million in non-cash impairment charges in 2025, whereas ABG is integrating its transformative acquisition of the Herb Chambers Automotive Group.
Introduction
In the highly competitive U.S. automotive retail sector, Asbury Automotive Group (ABG) and Group 1 Automotive (GPI) stand out as two of the largest publicly traded dealership operators. Both are Fortune-ranked companies with multi-billion-dollar revenue bases, expansive dealership networks, and ambitious growth strategies — yet they diverge meaningfully in geographic exposure, operational efficiency, and capital allocation priorities. For investors evaluating the automotive retail space, understanding how these two mid-cap peers compare across profitability, momentum, risk, and market positioning is essential. This stock comparison examines each company's recent performance, strategic developments, and the factors that may influence their relative trajectories in the current market environment.
ABG Overview and Recent Performance
Asbury Automotive Group (ABG), a Fortune 500 company headquartered in Duluth, Georgia, is one of the largest automotive retailers in the United States. As of late 2025, the company operated 171 new-vehicle dealerships representing 36 domestic and foreign brands, alongside 39 collision repair centers and its proprietary Total Care Auto (TCA) finance and insurance (F&I) arm. The company serves markets concentrated in the Rocky Mountain states, Texas, the Southeast, and the Northeast, with notable store brands including Herb Chambers, Larry H. Miller, and Koons.
In recent market activity, ABG delivered an all-time record annual revenue of $18 billion for full-year 2025, with adjusted diluted EPS (earnings per share) of $28.10, a 3% increase over the prior year. The company's same-store used retail gross profit per unit rose 18% in the fourth quarter, while parts and service gross profit climbed 13% year over year on a total-company basis. A defining strategic event was the July 2025 completion of the Herb Chambers Automotive Group acquisition, which added approximately $3 billion in annualized revenue and expanded ABG's footprint into the New England market. The company has also continued its transition to the Tekion dealer management system, resuming implementation across 15 additional stores in the fourth quarter. Share repurchases totaled $100 million for the year, demonstrating management's commitment to returning capital to shareholders while maintaining a transaction-adjusted net leverage ratio of 3.2x.
GPI Overview and Recent Performance
Group 1 Automotive (GPI), a Fortune 250 company based in Houston, Texas, operates an international network of 254 automotive dealerships across the United States and the United Kingdom. The company sells and services 36 vehicle brands, with a geographic mix that includes a significant presence in Texas (which alone contributed approximately 31.6% of new-vehicle unit volume in 2025), as well as California, the Northeast, and the U.K., which accounts for roughly 26% of total revenue.
Recent financial results highlight GPI's scale advantage: record full-year 2025 revenues reached $22.6 billion, a 13.2% increase over the prior year, driven by record revenues across all major business lines. The company posted record parts and service gross profit of $1.6 billion, up 15.9%, and record F&I revenues of $934.6 million. Adjusted diluted EPS from continuing operations was $40.71, a 3.8% increase. However, reported net income was pressured by $192.8 million in non-cash asset impairment charges, and the ongoing U.K. restructuring — which includes workforce reductions, facility closures, and a planned exit from certain Jaguar Land Rover (JLR) franchise operations — has introduced execution uncertainty. On the capital allocation front, GPI repurchased approximately 10.1% of its outstanding common shares in 2025 for $555 million, an aggressive return of capital that underscores management's conviction in the company's intrinsic value. The company also pays a regular dividend, with a current yield of approximately 0.66%.
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Head-to-Head Comparison
While both ABG and GPI compete in the same automotive retail industry, their profiles diverge across several key dimensions.
Scale and Geographic Diversification: GPI is the larger company by revenue ($22.6 billion versus $18 billion) and operates 254 dealerships compared to ABG's 171. Crucially, GPI has meaningful international exposure through its U.K. operations, while ABG remains entirely U.S.-focused. This gives GPI broader diversification but also exposes it to foreign exchange risk and the complexities of the U.K.'s challenging macroeconomic environment.
Profitability and Efficiency: ABG holds a clear edge in profitability metrics. Its net profit margin of approximately 3.05% is more than double GPI's roughly 1.46%, reflecting ABG's leaner cost structure and lower exposure to restructuring-related charges. ABG's return on equity (ROE) of approximately 14.5% also compares favorably. However, GPI's adjusted numbers — which strip out non-cash impairment charges — paint a more competitive picture on normalized earnings power.
Risk Factors: GPI's U.K. restructuring remains the more visible near-term risk. The company has taken impairment charges exceeding $190 million and expects additional portfolio actions in 2026. By contrast, ABG's primary risk is execution-related: integrating the $3 billion Herb Chambers acquisition and completing the Tekion technology rollout across its dealership network, both of which carry operational complexity.
Market Sentiment and Valuation: ABG trades at a trailing P/E of roughly 8.0, compared to GPI's approximately 12.8. The discount partly reflects GPI's near-term earnings distortions from impairment charges. Notably, Barclays recently assigned an "overweight" rating to GPI while rating ABG "equal weight," signaling a preference for GPI's risk-reward profile at current levels. Both stocks have pulled back from 52-week highs in recent months, reflecting broader sector caution around vehicle affordability and macroeconomic uncertainty.
Tickeron AI Verdict
Based on observable trend consistency, profitability stability, and relative positioning, Tickeron's AI analytical framework would likely tilt in favor of Asbury Automotive Group (ABG) in the current market environment. The rationale centers on ABG's higher net margin structure, a less complex operational footprint without the cross-border restructuring headwinds facing GPI, and a more attractive valuation on a trailing earnings basis. While GPI offers superior revenue scale, a dividend yield, and potentially higher upside if its U.K. turnaround gains traction, the near-term uncertainty associated with ongoing impairment charges and franchise exits introduces volatility that trend-following AI models typically seek to avoid. That said, both companies benefit from the durable, cash-generative parts and service segment that provides ballast across economic cycles, and either stock may appeal to different investor profiles depending on risk tolerance and geographic preferences. This assessment reflects probabilistic analysis of currently available data and should not be interpreted as a definitive prediction of future performance.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ABG is a Hold and GPI is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ABG’s FA Score shows that 0 FA rating(s) are green whileGPI’s FA Score has 1 green FA rating(s).
- ABG’s FA Score: 0 green, 5 red.
- GPI’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ABG’s TA Score shows that 3 TA indicator(s) are bullish while GPI’s TA Score has 3 bullish TA indicator(s).
- ABG’s TA Score: 3 bullish, 4 bearish.
- GPI’s TA Score: 3 bullish, 7 bearish.
Price Growth
ABG (@Automotive Aftermarket) experienced а +2.87% price change this week, while GPI (@Automotive Aftermarket) price change was -13.33% for the same time period.
The average weekly price growth across all stocks in the @Automotive Aftermarket industry was +1.31%. For the same industry, the average monthly price growth was +1.42%, and the average quarterly price growth was -12.89%.
Reported Earning Dates
ABG is expected to report earnings on Oct 27, 2026.
GPI is expected to report earnings on Oct 28, 2026.
Industries' Descriptions
@Automotive Aftermarket (+1.31% weekly)The Automotive Aftermarket consists of the manufacturing, remanufacturing, distribution, retailing, and installation of vehicle parts and accessories, after the sale of the automobile by the original equipment manufacturer (OEM) to the consumer. The aftermarket parts many not be manufactured by the OEM. According to a Technavio study, the US automotive parts aftermarket size is estimated to grow by USD 24.33 billion during 2018-2022 (CAGR 3%). Like many other industries, the automotive aftermarket is also being intensely penetrated by the digital boom. The online auto parts sales market is predicted to exceed $13B by 2020 (according to a study by Mirakl).
| ABG | GPI | ABG / GPI | |
| Capitalization | 4.31B | 3.42B | 126% |
| EBITDA | 1.07B | 818M | 131% |
| Gain YTD | -0.357 | -26.836 | 1% |
| P/E Ratio | 8.62 | 11.86 | 73% |
| Revenue | 18B | 22.2B | 81% |
| Total Cash | 35.7M | 164M | 22% |
| Total Debt | 5.53B | 5.78B | 96% |
ABG | GPI | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 46 | 31 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 68 Overvalued | 19 Undervalued | |
PROFIT vs RISK RATING 1..100 | 74 | 62 | |
SMR RATING 1..100 | 62 | 75 | |
PRICE GROWTH RATING 1..100 | 43 | 63 | |
P/E GROWTH RATING 1..100 | 43 | 46 | |
SEASONALITY SCORE 1..100 | 75 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
GPI's Valuation (19) in the Specialty Stores industry is somewhat better than the same rating for ABG (68). This means that GPI’s stock grew somewhat faster than ABG’s over the last 12 months.
GPI's Profit vs Risk Rating (62) in the Specialty Stores industry is in the same range as ABG (74). This means that GPI’s stock grew similarly to ABG’s over the last 12 months.
ABG's SMR Rating (62) in the Specialty Stores industry is in the same range as GPI (75). This means that ABG’s stock grew similarly to GPI’s over the last 12 months.
ABG's Price Growth Rating (43) in the Specialty Stores industry is in the same range as GPI (63). This means that ABG’s stock grew similarly to GPI’s over the last 12 months.
ABG's P/E Growth Rating (43) in the Specialty Stores industry is in the same range as GPI (46). This means that ABG’s stock grew similarly to GPI’s over the last 12 months.
| ABG | GPI | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 90% | 3 days ago 75% |
| Stochastic ODDS (%) | 3 days ago 70% | 3 days ago 76% |
| Momentum ODDS (%) | 3 days ago 78% | 3 days ago 58% |
| MACD ODDS (%) | N/A | 3 days ago 75% |
| TrendWeek ODDS (%) | 3 days ago 69% | 3 days ago 63% |
| TrendMonth ODDS (%) | 3 days ago 67% | 3 days ago 60% |
| Advances ODDS (%) | 5 days ago 70% | 5 days ago 72% |
| Declines ODDS (%) | 3 days ago 71% | 3 days ago 63% |
| BollingerBands ODDS (%) | 3 days ago 72% | 3 days ago 78% |
| Aroon ODDS (%) | 3 days ago 63% | 3 days ago 50% |
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ABG and
Correlation & Price change
A.I.dvisor indicates that over the last year, ABG has been closely correlated with AN. These tickers have moved in lockstep 78% of the time. This A.I.-generated data suggests there is a high statistical probability that if ABG jumps, then AN could also see price increases.
GPI and
Correlation & Price change
A.I.dvisor indicates that over the last year, GPI has been closely correlated with ABG. These tickers have moved in lockstep 78% of the time. This A.I.-generated data suggests there is a high statistical probability that if GPI jumps, then ABG could also see price increases.