AN vs GPI

For growth investors, Group 1 Automotive, Inc.

(GPI) is the stronger pick with 13. 2% revenue growth year-over-year, versus 3. 2% for AutoNation, Inc. (AN). AutoNation, Inc. (AN) offers the better valuation at 12. 0x trailing P/E (9. 7x forward), making it the more compelling value choice. Analysts rate AutoNation, Inc. (AN) a "Buy" — based on 34 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, AutoNation, Inc.

(AN) is the cheapest at 12. 0x versus Group 1 Automotive, Inc. at 13. 7x. On forward P/E, Group 1 Automotive, Inc. is actually cheaper at 8. 3x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: AutoNation, Inc. wins at 0. 31x versus Group 1 Automotive, Inc. 's 0. 82x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Group 1 Automotive, Inc.

(GPI) delivered a total return of +101. 7%, compared to +91. 6% for AutoNation, Inc. (AN). Over 10 years, the gap is even starker: GPI returned +474. 1% versus AN's +323. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Group 1 Automotive, Inc.

(GPI) is the lower-risk stock at 0. 77β versus AutoNation, Inc. 's 0. 85β — meaning AN is approximately 10% more volatile than GPI relative to the S&P 500. On balance sheet safety, Group 1 Automotive, Inc. (GPI) carries a lower debt/equity ratio of 2% versus 4% for AutoNation, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Group 1 Automotive, Inc.

(GPI) is pulling ahead at 13. 2% versus 3. 2% for AutoNation, Inc. (AN). On earnings-per-share growth, the picture is similar: AutoNation, Inc. grew EPS 0. 7% year-over-year, compared to -31. 6% for Group 1 Automotive, Inc.. Over a 3-year CAGR, GPI leads at 11. 6% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

AutoNation, Inc.

(AN) is the more profitable company, earning 2. 3% net margin versus 1. 4% for Group 1 Automotive, Inc. — meaning it keeps 2. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AN leads at 4. 8% versus 4. 2% for GPI. At the gross margin level — before operating expenses — AN leads at 17. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, AutoNation, Inc. (AN) is the more undervalued stock at a PEG of 0. 31x versus Group 1 Automotive, Inc. 's 0. 82x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Group 1 Automotive, Inc. (GPI) trades at 8. 3x forward P/E versus 9. 7x for AutoNation, Inc. — 1. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GPI: 38. 6% to $476. 67.

In this comparison, GPI (0.

6% yield) pays a dividend. AN does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Group 1 Automotive, Inc.

(GPI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 77), 0. 6% yield, +474. 1% 10Y return). Both have compounded well over 10 years (GPI: +474. 1%, AN: +323. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

GPI pays a dividend while AN does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.