Macy's vs Asbury Automotive

This page compares Macy's, Inc. and Asbury Automotive Group Inc to illuminate differences in business models, financial performance, and market context. It presents neutral, accessible analysis of each company's strategy, operations, and position within their respective industries to help readers understand their relative strengths and challenges. Educational content, not financial advice.

This page compares Macy's, Inc. and Asbury Automotive Group Inc to illuminate differences in business models, financial performance, and market context. It presents neutral, accessible analysis of eac...

Comparison Snapshot

Key Financial Metrics

M

Metric

ABG

$5.66B

Market Cap

$4.76B

-3.47%

Potential Profit

0.42%

Hold

Analyst Rating

Hold

Investment Analysis

Macy's

M

Pros

Macy's trades at a significant discount to industry peers on price-to-book and price-to-cash flow, suggesting potential value if fundamentals stabilise.
The company delivered a sharp year-over-year increase in net earnings, indicating improved cost control and operational efficiency.
Macy's maintains a solid return on equity and invested capital relative to key department store rivals, reflecting effective capital deployment.

Considerations

Revenue has declined year-over-year, highlighting ongoing challenges in the core retail business and competitive pressures.
The stock is widely rated 'Hold' by analysts, with consensus price targets implying meaningful downside from current levels.
Macy's has relatively low liquidity metrics, including a quick ratio below industry norms, which may constrain financial flexibility.

Asbury Automotive

ABG

Pros

Asbury Automotive posted double-digit revenue growth over the past year, benefiting from resilient demand in the automotive retail sector.
The company's diversified service offerings, including finance, insurance, and aftermarket products, provide additional revenue streams beyond vehicle sales.
Asbury's valuation multiples, such as price-to-earnings, remain below historical highs, potentially appealing to value-oriented investors.

Considerations

Net income fell sharply despite top-line growth, indicating margin pressure from rising costs or promotional activity.
The business is highly cyclical and exposed to economic downturns that could reduce consumer demand for vehicles and related services.
Asbury does not pay a dividend, which may limit its appeal to income-focused investors compared to peers in the sector.

About The Companies

Macy's (M)

Macy's, Inc. (ticker M) is a legacy department‑store operator that runs several retail banners and an expanding online business. Investors should know it combines a sizeable physical footprint of flagship stores with investments in e‑commerce, loyalty programmes and off‑price formats to steady revenue. At a market capitalisation near $4.9 billion, Macy's is sensitive to consumer spending cycles, discretionary income trends and competition from online and discount retailers. Balance‑sheet strength, store rationalisation, and management's margin initiatives can influence returns, but retail earnings are often cyclical and revenue can be volatile. This summary is educational only — not personalised advice — and values can fall as well as rise. Before deciding, review up‑to‑date financial reports, recent company announcements and consider how this stock would fit your risk tolerance and time horizon.

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