ABG (Asbury Automotive Group Inc) vs S&P 500 Comparison

ABG

S&P 500

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ABG

S&P 500

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ABG

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

ABG

ORLY

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CVNA

KMX

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Asbury Automotive Group Inc
Glance View

Market Cap

4.8B USD

Industry

Retail

Asbury Automotive Group Inc., an established entity in the automotive retailing sector, has carved out a remarkable presence in the bustling world of vehicle sales and services. The company, based in Duluth, Georgia, operates a network of over 100 dealerships, offering new and pre-owned vehicles across a multitude of brands, including domestic, luxury, and import names. Asbury connects with customers not only in the showroom but also through its strong online presence, capitalizing on the shifting consumer preferences toward digital purchasing. By leveraging an omnichannel sales approach, Asbury provides a seamless car-buying experience that integrates the digital with the physical—a hallmark of its adaptive and customer-centric business model. The company’s revenue streams flow robustly from four primary sources: vehicle sales, finance and insurance products, parts and service, and the sale of pre-owned vehicles. New vehicle sales draw in a significant portion of earnings, but it is through their robust F&I (Finance and Insurance) segment that Asbury secures high-margin gains, offering loans, warranties, and insurance products to car buyers. Moreover, the recurrent demand for vehicle maintenance and repair fuels their parts and services division, a dependable and lucrative contributor to their bottom line, offering a consistent income stream regardless of economic fluctuations. This multifaceted approach underlines Asbury's resilience and capability to sustain profitability in the ever-evolving automotive industry landscape.

View ABG Analysis

ABG Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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ABG

vs

S&P 500

Stocks Performance
ABG vs S&P 500

Performance Gap
ABG vs S&P 500

Performance By Year
ABG vs S&P 500

Competitors Performance
Asbury Automotive Group Inc vs Peers

Asbury Automotive Group Inc
Glance View

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ABG vs S&P 500

Stocks Performance ABG vs S&P 500

Performance Gap ABG vs S&P 500

Performance By Year ABG vs S&P 500

Competitors Performance Asbury Automotive Group Inc vs Peers

Asbury Automotive Group Inc Glance View

Company

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Stocks

ABG

vs

S&P 500

Stocks Performance
ABG vs S&P 500

Performance Gap
ABG vs S&P 500

Performance By Year
ABG vs S&P 500

Competitors Performance
Asbury Automotive Group Inc vs Peers

Asbury Automotive Group Inc
Glance View