Gentex vs Asbury Automotive

This page compares Gentex and Asbury Automotive, exploring business models, financial performance, and market context to illuminate how both companies operate. The content is presented in a neutral, accessible manner, highlighting governance, strategy, and industry position without recommendation. Educational content, not financial advice.

This page compares Gentex and Asbury Automotive, exploring business models, financial performance, and market context to illuminate how both companies operate. The content is presented in a neutral, a...

Comparison Snapshot

Key Financial Metrics

GNTX

Metric

ABG

$5.13B

Market Cap

$4.76B

18.34%

Potential Profit

0.42%

Hold

Analyst Rating

Hold

Investment Analysis

Gentex

GNTX

Pros

Gentex maintains a strong balance sheet with a high current ratio, indicating solid liquidity and financial stability.
The company has a history of consistent profitability, with above-average return on assets and return on invested capital.
Gentex benefits from its focus on innovative automotive electronics, which supports long-term growth in vehicle technology.

Considerations

Gentex faces near-term headwinds from automotive supply chain disruptions and declining core automotive sales.
Recent earnings have missed analyst expectations, contributing to a notable share price decline over the past year.
The company's growth is closely tied to cyclical auto industry demand, making it vulnerable to economic downturns.

Asbury Automotive

ABG

Pros

Asbury Automotive's product mix includes import and luxury brands, attracting more affluent customers and supporting higher-margin sales.
The company's digital sales platform, Clicklane, targets higher credit quality and wealthier customers, enhancing customer base resilience.
Asbury operates a large network of dealerships, providing geographic diversification and scale advantages.

Considerations

Asbury's business is highly sensitive to auto sales cycles, exposing it to downturns in consumer demand and economic volatility.
The dealership model faces increasing competition from online car retailers and changing consumer preferences.
Profitability can be pressured by inventory costs and fluctuations in used car prices, impacting margins.

About The Companies

Gentex (GNTX)

Gentex Corporation (GNTX) is a Michigan-based supplier of automotive technology best known for automatic-dimming rear‑view mirrors and integrated connectivity features such as HomeLink. Over time it has broadened into camera-based driver awareness, vision and sensing components and other in‑vehicle electronics sold to original equipment manufacturers (OEMs). Revenue tends to track global vehicle production and content-per-vehicle, while profitability benefits from scale, intellectual property and long-term OEM relationships. With a market capitalisation around $5.91bn, Gentex sits between traditional auto-parts and electronics suppliers and faces both opportunity from growing in‑car electronics and risks from cyclical vehicle demand, semiconductor supply and competition. Investors should note exposure to the automotive cycle, possible margin pressure when content mix shifts, and evolving standards for advanced driver assistance systems. This is general educational information and not personalised advice; values can rise or fall and past performance does not guarantee future results.

Asbury Automotive (ABG)

Asbury Automotive Group Inc. is a prominent American automotive retailer. The company's operations are divided into two main segments: Dealerships and Total Care Auto (TCA). Through its network of dealerships, Asbury offers a comprehensive range of automotive products and services, covering the full lifecycle of vehicle ownership. This includes the sale of new and used vehicles, as well as parts and services for vehicle repair, maintenance, and collision repairs. Furthermore, the company provides finance and insurance (F&I) products by arranging vehicle financing through third parties and offering aftermarket products like extended service contracts. With around 175 new-vehicle dealerships representing over 30 different brands, Asbury has a significant footprint in the US market. Investors may find it useful to consider how economic factors affecting consumer spending on large purchases, like cars, could influence the company's performance. As with any investment, a stock's value can go down as well as up.

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Comparison Snapshot