Contrasting Asbury Automotive Group (NYSE:ABG) and Nextnrg (NASDAQ:NXXT)

Asbury Automotive Group (NYSE:ABG) and Nextnrg (NASDAQ:NXXT) are both retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Earnings and Valuation

This table compares Asbury Automotive Group and Nextnrg”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Asbury Automotive Group	$17.19 billion	0.25	$430.30 million	$21.51	10.16
Nextnrg	$27.77 million	13.33	-$10.47 million	($6.67)	-0.50

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

Risk & Volatility

Asbury Automotive Group has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Nextnrg has a beta of -0.57, meaning that its stock price is 157% less volatile than the S&P 500.

Institutional & Insider Ownership

10.6% of Nextnrg shares are held by institutional investors. 0.5% of Asbury Automotive Group shares are held by insiders. Comparatively, 81.7% of Nextnrg shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Asbury Automotive Group and Nextnrg, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Asbury Automotive Group	0	5	1	0	2.17
Nextnrg	0	0	0	0	0.00

Asbury Automotive Group presently has a consensus target price of $263.00, indicating a potential upside of 20.38%. Given Asbury Automotive Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Asbury Automotive Group is more favorable than Nextnrg.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Asbury Automotive Group	2.50%	16.29%	5.34%
Nextnrg	-62.85%	N/A	-295.04%

Summary

Asbury Automotive Group beats Nextnrg on 11 of the 14 factors compared between the two stocks.

About Asbury Automotive Group

Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, and collision repair services. The company also provides finance and insurance products, including arranging vehicle financing through third parties; and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, prepaid maintenance, and disability and accident insurance. Asbury Automotive Group, Inc. was founded in 1996 and is based in Duluth, Georgia.

About Nextnrg

NextNRG, Inc. engages in the provision of fuel delivery services. Its app-based interface provides customers with the ability to select the time and location of their fueling. It offers diesel, red diesel, and REC-90. The company was founded by Michael D. Farkas on March 28, 2019 and is headquartered in Miami, FL.