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ABG vs REYN

ABG
Asbury Automotive Group, Inc.
NEUTRAL
Price
$238.04
Market Cap
$4.68B
Sector
Consumer Cyclical
AI Confidence
72%
REYN
Reynolds Consumer Products Inc.
NEUTRAL
Price
$22.35
Market Cap
$4.71B
Sector
Consumer Cyclical
AI Confidence
85%

Valuation

P/E Ratio
ABG
8.76
REYN
15.63
Forward P/E
ABG
8.53
REYN
13.35
P/B Ratio
ABG
1.19
REYN
2.09
P/S Ratio
ABG
0.26
REYN
1.27
EV/EBITDA
ABG
9.55
REYN
9.37

Profitability

Gross Margin
ABG
16.99%
REYN
24.56%
Operating Margin
ABG
5.5%
REYN
17.89%
Profit Margin
ABG
3.15%
REYN
8.09%
ROE
ABG
15.49%
REYN
13.7%
ROA
ABG
5.85%
REYN
6.78%

Growth

Revenue Growth
ABG
13.3%
REYN
1.4%
Earnings Growth
ABG
18.1%
REYN
-2.3%

Financial Health

Debt/Equity
ABG
1.54
REYN
0.75
Current Ratio
ABG
0.99
REYN
1.93
Quick Ratio
ABG
0.16
REYN
0.89

Dividends

Dividend Yield
ABG
--
REYN
4.12%
Payout Ratio
ABG
0.0%
REYN
64.34%

AI Verdict

ABG NEUTRAL

ABG exhibits strong fundamental health with a Piotroski F-Score of 7/9, indicating robust accounting strength, though the absence of an Altman Z-Score limits distress risk assessment. The stock appears undervalued relative to its Graham Number of $349.14 and intrinsic value of $801.22, trading at $238.04, but elevated leverage and weak technicals weigh on sentiment. Solid profitability metrics, double-digit revenue and earnings growth, and strong ROE contrast with insider selling and a bearish technical trend. Analysts concur with a 'hold' rating, aligning with mixed signals between value and sentiment.

Strengths
Strong Piotroski F-Score of 7/9 indicates high financial health and quality earnings
Attractive valuation: trading significantly below Graham Number ($349.14) and far below intrinsic value ($801.22)
Robust profitability with ROE of 15.49% and operating margin of 5.50%, well above sector average
Risks
High debt/equity ratio of 1.54, above sector average (1.60), indicating elevated financial leverage
Current ratio of 0.99 and quick ratio of 0.16 signal potential short-term liquidity pressure
Insider selling activity: $1.01M in net sales over last 6 months, signaling lack of confidence
REYN NEUTRAL

REYN exhibits a stable financial profile with a Piotroski F-Score of 6/9 and a healthy current ratio of 1.93, though it lacks a definitive Altman Z-Score. While the company is significantly more profitable and less levered than its sector peers, it suffers from stagnant revenue growth (1.40%) and slightly negative earnings growth (-2.30%). The stock is currently trading at a premium to both its Graham Number ($18.57) and Intrinsic Value ($10.01), suggesting limited valuation upside. The investment case rests primarily on its 4.12% dividend yield and consistent earnings beat track record, offset by a bearish technical trend.

Strengths
Stable financial health indicated by a Piotroski F-Score of 6/9
Strong liquidity position with a current ratio of 1.93
Consistent earnings track record with 3/4 beats in the last year
Risks
Stagnant top-line growth with YoY revenue growth of only 1.40%
Negative earnings growth (-2.30% YoY) indicating a lack of fundamental momentum
Strongly bearish technical trend (0/100 score)

Compare Another Pair

ABG vs REYN: Head-to-Head Comparison

This page compares Asbury Automotive Group, Inc. (ABG) and Reynolds Consumer Products Inc. (REYN) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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