Contrasting FFP Marketing (OTCMKTS:FFPM) & Group 1 Automotive (NYSE:GPI)

Group 1 Automotive (NYSE:GPI – Get Rating) and FFP Marketing (OTCMKTS:FFPM – Get Rating) are both retail/wholesale companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.

Profitability

This table compares Group 1 Automotive and FFP Marketing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Group 1 Automotive	4.57%	34.22%	11.45%
FFP Marketing	N/A	N/A	N/A

Risk and Volatility

Group 1 Automotive has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, FFP Marketing has a beta of 3, indicating that its share price is 200% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Group 1 Automotive and FFP Marketing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Group 1 Automotive	1	0	2	0	2.33
FFP Marketing	0	0	0	0	N/A

Group 1 Automotive currently has a consensus target price of $253.00, suggesting a potential upside of 22.86%. Given Group 1 Automotive’s higher probable upside, analysts plainly believe Group 1 Automotive is more favorable than FFP Marketing.

Earnings and Valuation

This table compares Group 1 Automotive and FFP Marketing’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Group 1 Automotive	$16.22 billion	0.18	$751.50 million	$47.02	4.38
FFP Marketing	N/A	N/A	N/A	N/A	N/A

Group 1 Automotive has higher revenue and earnings than FFP Marketing.

Institutional and Insider Ownership

97.7% of Group 1 Automotive shares are held by institutional investors. 3.8% of Group 1 Automotive shares are held by insiders. Comparatively, 41.6% of FFP Marketing shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Group 1 Automotive beats FFP Marketing on 7 of the 9 factors compared between the two stocks.

About Group 1 Automotive

(Get Rating)

Group 1 Automotive, Inc. engages in the automotive retailing industry. The firm operates through the following geographical segments: U.S, the UK, and Brazil. It also sells new and used cars and light trucks, arranges related vehicle financing, sells service contracts, provides automotive maintenance and repair services, and sells vehicle parts. The company was founded in 1995 and is headquartered in Houston, TX.

About FFP Marketing

(Get Rating)

FFP Marketing Company, Inc., through its subsidiaries, operates convenience stores with gas station. It also retails motor fuel, merchandise, and ancillary products and services at convenience stores, and truck stop. The company operates motor fuel terminal and processing facility. The convenience stores sell groceries, tobacco product, take-out food and beverages, dairy products, and non-food merchandise, such as money order, telephone calling cards, lottery tickets, health and beauty aid, magazines, and motor fuel. The company sells motor fuel on a wholesale basis to independent, regional chain and end user, such as contractors, operators of vehicle fleet, and public utilities. The company was founded in 1997 and is based in Fort Worth, Texas.