Head to Head Comparison: Group 1 Automotive (NYSE:GPI) & Tilly’s (NYSE:TLYS)

Group 1 Automotive (NYSE:GPI) and Tilly’s (NYSE:TLYS) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.

Institutional and Insider Ownership

99.9% of Group 1 Automotive shares are held by institutional investors. Comparatively, 76.4% of Tilly’s shares are held by institutional investors. 2.4% of Group 1 Automotive shares are held by company insiders. Comparatively, 26.4% of Tilly’s shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Group 1 Automotive and Tilly’s”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Group 1 Automotive	$22.15 billion	0.12	$325.20 million	$24.01	9.52
Tilly’s	$553.59 million	0.25	-$17.45 million	$0.06	75.95

Group 1 Automotive has higher revenue and earnings than Tilly’s. Group 1 Automotive is trading at a lower price-to-earnings ratio than Tilly’s, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Group 1 Automotive	1.31%	15.66%	4.43%
Tilly’s	0.34%	2.37%	0.61%

Volatility and Risk

Group 1 Automotive has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Tilly’s has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Group 1 Automotive and Tilly’s, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Group 1 Automotive	3	2	5	0	2.20
Tilly’s	0	3	0	0	2.00

Group 1 Automotive presently has a consensus target price of $341.67, suggesting a potential upside of 49.47%. Tilly’s has a consensus target price of $5.50, suggesting a potential upside of 20.69%. Given Group 1 Automotive’s stronger consensus rating and higher probable upside, research analysts clearly believe Group 1 Automotive is more favorable than Tilly’s.

Summary

Group 1 Automotive beats Tilly’s on 11 of the 14 factors compared between the two stocks.

About Group 1 Automotive

Group 1 Automotive, Inc., through its subsidiaries, operates in the automotive retail industry in the United States and the United Kingdom. The company sells new and used cars, light trucks, and vehicle parts, as well as service and insurance contracts; arranges related vehicle financing; and offers automotive maintenance and repair services. Group 1 Automotive, Inc. was incorporated in 1995 and is headquartered in Houston, Texas.

About Tilly’s

Tilly’s, Inc. engages in the retail of casual apparel, footwear, and accessories. Its stores are located in retail centers, including malls, lifestyle centers, power centers, community centers, outlet centers, and street-front locations. The company was founded by Hezy Shaked and Tilly Levine in 1982 and is headquartered in Irvine, CA.