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GPI vs SAH
Which Stock Would AI Choose? Group 1 Automotive (GPI) vs. Sonic Automotive (SAH) Stock Comparison
Key Takeaways
- Group 1 Automotive (GPI) generated record full-year 2025 revenues of $22.6 billion, while Sonic Automotive (SAH) delivered record annual revenues of $15.2 billion, reflecting different scale and geographic reach.
- Both companies faced margin compression on new and used vehicle sales in recent quarters, but offset the pressure with record-high parts, service, and finance & insurance (F&I) gross profit.
- GPI executed an aggressive share buyback program, repurchasing approximately 10.1% of outstanding shares in 2025, while SAH returned capital through a more modest repurchase plan and a regular quarterly dividend.
- SAH stock has significantly outperformed in 2026 year-to-date, gaining over 66%, while GPI shares have declined roughly 22% from their 52-week high, highlighting divergent market sentiment.
- GPI carries a substantially lower trailing P/E (price-to-earnings) ratio of approximately 12.8, compared to SAH's P/E of roughly 32.7, reflecting different valuation frameworks and growth expectations.
- SAH's diversified three-segment model — Franchised Dealerships, EchoPark, and Powersports — contrasts with GPI's international footprint spanning U.S. and U.K. markets, each carrying distinct risk and reward profiles.
Introduction
For investors evaluating the automotive retail space, GPI (Group 1 Automotive) and SAH (Sonic Automotive) represent two of the largest publicly traded dealership groups in the United States. Both operate extensive franchised dealership networks, yet they diverge meaningfully in scale, geographic diversification, segment strategy, and recent stock performance. This stock comparison examines how these two industry players have navigated a dynamic environment shaped by moderating vehicle margins, evolving consumer affordability concerns, and a shifting macroeconomic backdrop. The analysis may prove particularly useful for investors seeking to understand how different business models within the same sector can produce notably different market outcomes and valuation profiles.
GPI Overview and Recent Performance
Group 1 Automotive, a Fortune 250 company headquartered in Houston, Texas, operates 254 dealerships across the United States and the United Kingdom. The company's diversified business spans new and used vehicle sales, parts and service, and finance and insurance operations. In full-year 2025, GPI reported record revenues of $22.6 billion, a 13.2% increase year-over-year, and record gross profit of $3.6 billion, up 11.8%. Parts and service gross profit reached an all-time high of $1.6 billion, underscoring the resilience of the company's aftersales business.
Despite these headline records, recent quarters have revealed pockets of pressure. In the fourth quarter of 2025, adjusted diluted earnings per share (EPS) came in at $8.49, missing consensus estimates and declining from $10.02 in the prior-year period. New vehicle gross profit per unit has been moderating from elevated pandemic-era levels, and the company recorded approximately $192.8 million in non-cash asset impairment charges for the full year, primarily tied to its U.S. reporting unit. The U.K. segment, which was roughly doubled through the Inchcape Retail acquisition, has required ongoing restructuring — including headcount reductions and dealership closures — to address persistently weak macroeconomic conditions and margin pressures from the battery electric vehicle (BEV) mandate and heightened competition.
On the capital allocation front, GPI's discipline has been a defining feature. The company repurchased roughly 10.1% of its outstanding shares in 2025, deploying $555 million at an average price of approximately $413 per share. In recent weeks, GPI shares have traded around $337, with a 52-week range of approximately $279 to $488. The stock currently carries a trailing P/E ratio near 12.8, which is notably below the broader specialty retail industry average, suggesting markets are pricing in continued earnings normalization and execution risk tied to the U.K. turnaround.
SAH Overview and Recent Performance
Sonic Automotive, headquartered in Charlotte, North Carolina, is one of the nation's largest automotive retailers, operating through three distinct segments: Franchised Dealerships, EchoPark (a pre-owned vehicle specialty retail concept), and Powersports. In full-year 2025, SAH delivered all-time record annual revenues of $15.2 billion, a 7% increase year-over-year, and record gross profit of $2.4 billion, up 9%. The company achieved record results in both Fixed Operations and F&I gross profit, with these high-margin categories collectively contributing over 75% of total gross profit in the Franchised Dealerships segment.
The EchoPark segment has been a standout turnaround story. After years of investment and optimization, EchoPark produced all-time record annual segment income and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in 2025, with adjusted EBITDA reaching $49.2 million — a 78% increase year-over-year. The Powersports segment also hit all-time records, generating $202.9 million in annual revenues and $11.5 million in adjusted EBITDA. However, SAH faced headwinds as well: full-year reported net income declined 45% to $118.7 million, weighed down by a $173.8 million non-cash impairment charge in the second quarter of 2025. Adjusted net income of $229.2 million rose 17%, painting a more constructive underlying picture.
Market sentiment toward SAH has shifted dramatically in recent months. After trading as low as approximately $54 per share in early 2026, the stock has surged roughly 66% year-to-date, recently trading near $103 and approaching its 52-week high. This rally has been fueled by improving EchoPark profitability, record Powersports performance, a Citigroup upgrade to Buy in late 2025, and the company's issuance of constructive 2026 guidance across all three segments. The stock now trades at a trailing P/E ratio of approximately 32.7, reflecting elevated growth expectations relative to its peer group.
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Head-to-Head Comparison
Scale and Geographic Footprint: GPI is meaningfully larger by revenue ($22.6 billion versus $15.2 billion) and operates an international network spanning the U.S. and U.K., which introduces currency risk and exposure to distinct macroeconomic environments. SAH is entirely U.S.-focused but differentiates through its three-segment structure, which includes the EchoPark used-vehicle concept and a growing Powersports division.
Margin Profiles and Business Mix: Both companies have leaned heavily on high-margin Fixed Operations and F&I revenue as new and used vehicle gross profit per unit has compressed from pandemic-era peaks. SAH's F&I gross profit per retail unit reached $2,551 in 2025 (up 7%), while GPI's was $2,036 (up 1.6%), though GPI's parts and service gross profit of $1.6 billion is significantly larger in absolute terms. SAH's EchoPark segment, while still maturing, demonstrated improving unit economics and record profitability in 2025.
Capital Allocation: GPI has prioritized aggressive share repurchases, buying back over 10% of its float in a single year. SAH maintained a more balanced approach, repurchasing roughly 1.3 million shares for $82.4 million while also paying a quarterly dividend of $0.38 per share (and later $0.41). GPI's approach signals management conviction in intrinsic value, while SAH's reflects a broader stakeholder return model.
Recent Momentum and Valuation: This is where the divergence is starkest. SAH has been a standout performer in 2026, surging over 66% year-to-date, while GPI has declined approximately 22% from its 52-week high. SAH's trailing P/E of roughly 32.7 reflects optimism around EchoPark's profitability inflection and Powersports growth, whereas GPI's P/E of approximately 12.8 suggests the market is discounting continued earnings normalization and U.K. restructuring uncertainty. These valuation spreads offer a clear contrast: GPI may appeal to value-oriented investors focused on near-term earnings multiples, while SAH's premium reflects a growth narrative centered on segment-level turnarounds.
Tickeron AI Verdict
Based on observable trend data and relative positioning, Tickeron's AI would likely lean toward SAH in the current market environment. The stock's strong upward momentum in recent months, combined with improving fundamentals across all three operating segments, record EchoPark and Powersports profitability, constructive forward guidance, and positive analyst sentiment, creates a favorable backdrop from a trend-following standpoint. That said, GPI presents a compelling valuation case — trading at a single-digit forward P/E with significant share count reduction underway — that could attract AI strategies oriented toward mean reversion or deep value. The U.K. restructuring remains a near-term overhang for GPI, and until there is clearer evidence of stabilization in that segment, trend-following models are more likely to favor the cleaner, U.S.-focused momentum story that SAH currently offers. As always, probabilistic models weigh multiple factors simultaneously, and no single data point is determinative; the relative attractiveness of each stock depends on the specific strategy and time horizon of the AI trading bot in question.
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 GPI is a Buy and SAH 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).
GPI’s FA Score shows that 1 FA rating(s) are green whileSAH’s FA Score has 2 green FA rating(s).
- GPI’s FA Score: 1 green, 4 red.
- SAH’s FA Score: 2 green, 3 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.
GPI’s TA Score shows that 3 TA indicator(s) are bullish while SAH’s TA Score has 2 bullish TA indicator(s).
- GPI’s TA Score: 3 bullish, 7 bearish.
- SAH’s TA Score: 2 bullish, 6 bearish.
Price Growth
GPI (@Automotive Aftermarket) experienced а -13.33% price change this week, while SAH (@Automotive Aftermarket) price change was -8.25% 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
GPI is expected to report earnings on Oct 28, 2026.
SAH is expected to report earnings on Oct 22, 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).
| GPI | SAH | GPI / SAH | |
| Capitalization | 3.42B | 2.9B | 118% |
| EBITDA | 818M | 666M | 123% |
| Gain YTD | -26.836 | 49.702 | -54% |
| P/E Ratio | 11.86 | 14.58 | 81% |
| Revenue | 22.2B | 15.5B | 143% |
| Total Cash | 164M | 19.2M | 854% |
| Total Debt | 5.78B | 4.67B | 124% |
GPI | SAH | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 31 | 36 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 19 Undervalued | 12 Undervalued | |
PROFIT vs RISK RATING 1..100 | 62 | 29 | |
SMR RATING 1..100 | 75 | 45 | |
PRICE GROWTH RATING 1..100 | 63 | 38 | |
P/E GROWTH RATING 1..100 | 46 | 62 | |
SEASONALITY SCORE 1..100 | 50 | 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.
SAH's Valuation (12) in the Specialty Stores industry is in the same range as GPI (19). This means that SAH’s stock grew similarly to GPI’s over the last 12 months.
SAH's Profit vs Risk Rating (29) in the Specialty Stores industry is somewhat better than the same rating for GPI (62). This means that SAH’s stock grew somewhat faster than GPI’s over the last 12 months.
SAH's SMR Rating (45) in the Specialty Stores industry is in the same range as GPI (75). This means that SAH’s stock grew similarly to GPI’s over the last 12 months.
SAH's Price Growth Rating (38) in the Specialty Stores industry is in the same range as GPI (63). This means that SAH’s stock grew similarly to GPI’s over the last 12 months.
GPI's P/E Growth Rating (46) in the Specialty Stores industry is in the same range as SAH (62). This means that GPI’s stock grew similarly to SAH’s over the last 12 months.
| GPI | SAH | |
|---|---|---|
| RSI ODDS (%) | 4 days ago 75% | 4 days ago 76% |
| Stochastic ODDS (%) | 4 days ago 76% | 4 days ago 74% |
| Momentum ODDS (%) | 4 days ago 58% | 4 days ago 73% |
| MACD ODDS (%) | 4 days ago 75% | 4 days ago 82% |
| TrendWeek ODDS (%) | 4 days ago 63% | 4 days ago 69% |
| TrendMonth ODDS (%) | 4 days ago 60% | 4 days ago 71% |
| Advances ODDS (%) | 6 days ago 72% | 6 days ago 71% |
| Declines ODDS (%) | 4 days ago 63% | 4 days ago 71% |
| BollingerBands ODDS (%) | 4 days ago 78% | 4 days ago 70% |
| Aroon ODDS (%) | 4 days ago 50% | 4 days ago 69% |
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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.