Critical Survey: Camping World Holdings (CWH) versus Asbury Automotive Group (ABG)

Camping World Holdings (NYSE: CWH) and Asbury Automotive Group (NYSE:ABG) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, valuation, earnings, profitability and risk.

Dividends

Camping World Holdings pays an annual dividend of $0.32 per share and has a dividend yield of 0.9%. Asbury Automotive Group does not pay a dividend. Camping World Holdings pays out 14.3% of its earnings in the form of a dividend.

Profitability

This table compares Camping World Holdings and Asbury Automotive Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Camping World Holdings 2.51% -319.74% 7.45%
Asbury Automotive Group 2.53% 46.58% 5.69%

Earnings & Valuation

This table compares Camping World Holdings and Asbury Automotive Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Camping World Holdings $3.83 billion 0.21 $359.76 million $2.24 15.64
Asbury Automotive Group $6.53 billion 0.16 $326.10 million $7.68 6.60

Camping World Holdings has higher revenue, but lower earnings than Asbury Automotive Group. Asbury Automotive Group is trading at a lower price-to-earnings ratio than Camping World Holdings, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

86.2% of Camping World Holdings shares are held by institutional investors. Comparatively, 99.9% of Asbury Automotive Group shares are held by institutional investors. 66.6% of Camping World Holdings shares are held by insiders. Comparatively, 11.9% of Asbury Automotive Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Camping World Holdings and Asbury Automotive Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Camping World Holdings 0 0 11 0 3.00
Asbury Automotive Group 1 4 0 0 1.80

Camping World Holdings currently has a consensus price target of $35.10, indicating a potential upside of 0.17%. Asbury Automotive Group has a consensus price target of $56.75, indicating a potential upside of 12.04%. Given Asbury Automotive Group’s higher possible upside, analysts plainly believe Asbury Automotive Group is more favorable than Camping World Holdings.

Summary

Camping World Holdings beats Asbury Automotive Group on 8 of the 15 factors compared between the two stocks.

About Camping World Holdings

Camping World Holdings, Inc. is a provider of a portfolio of services, protection plans, products and resources for recreational vehicle (RV) enthusiasts. The Company operates through two segments: Consumer Services and Plans, and Retail. Within the Consumer Services and Plans segment, the Company derives revenue from the sale of the offerings, including emergency roadside assistance; property and casualty insurance programs; travel assist programs; extended vehicle service contracts; co branded credit cards; vehicle financing and refinancing; club memberships, and publications and directories. Within the Retail segment, it derives revenue from the sale of the products, including new vehicles; used vehicles; parts and service, including RV accessories and supplies, and finance and insurance. The Company provides its offerings through its two brands: Good Sam and Camping World. Its Camping World brand operates a network of RV centric retail locations in the United States.

About Asbury Automotive Group

Asbury Automotive Group, Inc. is an automotive retailer in the United States. As of December 31, 2016, the Company owned and operated 93 new vehicle franchises, representing 28 brands of automobiles at 77 dealership locations, and 23 collision centers in the United States. In addition, as of December 31, 2016, it owned and operated two standalone used vehicle stores in Florida. Its stores offer automotive products and services, including new and used vehicles; parts and service, including vehicle repair and maintenance services, replacement parts, and collision repair services; and finance and insurance products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) insurance, prepaid maintenance, and credit life and disability insurance. Its new vehicle revenues include new vehicle sales and lease transactions arranged by dealerships with third-party financial institutions.

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