Contrasting Lazydays (NASDAQ:GORV) & Group 1 Automotive (NYSE:GPI)

Group 1 Automotive (NYSE:GPI) and Lazydays (NASDAQ:GORV) are both retail/wholesale companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Group 1 Automotive and Lazydays, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Group 1 Automotive	0	1	3	0	2.75
Lazydays	0	0	0	0	N/A

Group 1 Automotive presently has a consensus target price of $330.83, suggesting a potential upside of 11.29%. Given Group 1 Automotive’s higher possible upside, analysts clearly believe Group 1 Automotive is more favorable than Lazydays.

Volatility & Risk

Group 1 Automotive has a beta of 1.37, suggesting that its stock price is 37% more volatile than the S&P 500. Comparatively, Lazydays has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Group 1 Automotive	3.23%	22.45%	7.62%
Lazydays	-12.48%	-16.47%	-3.86%

Valuation and Earnings

This table compares Group 1 Automotive and Lazydays’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Group 1 Automotive	$18.21 billion	0.22	$601.60 million	$42.36	7.02
Lazydays	$1.08 billion	0.03	-$110.27 million	($9.62)	-0.26

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

Insider and Institutional Ownership

99.9% of Group 1 Automotive shares are held by institutional investors. Comparatively, 89.7% of Lazydays shares are held by institutional investors. 1.7% of Group 1 Automotive shares are held by insiders. Comparatively, 61.5% of Lazydays shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Group 1 Automotive beats Lazydays on 11 of the 13 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 Lazydays

Lazydays Holdings, Inc. operates recreational vehicle (RV) dealerships under the Lazydays name in the United States. The company offers RV sales, RV-repair and services, financing and insurance products, third-party protection plans, and after-market parts and accessories. It also operates the Lazydays RV resort at Tampa, Florida. The company was founded in 1976 and is based in Tampa, Florida.