Comparing Asbury Automotive Group (NYSE:ABG) & Luk Fook (OTCMKTS:LKFLF)

Luk Fook (OTCMKTS:LKFLF) and Asbury Automotive Group (NYSE:ABG) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, dividends, earnings, institutional ownership and analyst recommendations.

Profitability

This table compares Luk Fook and Asbury Automotive Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Luk Fook	N/A	N/A	N/A
Asbury Automotive Group	2.83%	12.72%	4.31%

Analyst Recommendations

This is a summary of current ratings for Luk Fook and Asbury Automotive Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Luk Fook	0	0	0	0	0.00
Asbury Automotive Group	1	6	2	0	2.11

Asbury Automotive Group has a consensus target price of $246.71, suggesting a potential upside of 16.16%. Given Asbury Automotive Group’s stronger consensus rating and higher possible upside, analysts plainly believe Asbury Automotive Group is more favorable than Luk Fook.

Volatility & Risk

Luk Fook has a beta of 0.01, suggesting that its stock price is 99% less volatile than the S&P 500. Comparatively, Asbury Automotive Group has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.

Earnings and Valuation

This table compares Luk Fook and Asbury Automotive Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Luk Fook	$2.20 billion	0.80	$262.07 million	N/A	N/A
Asbury Automotive Group	$18.00 billion	0.21	$492.00 million	$26.74	7.94

Asbury Automotive Group has higher revenue and earnings than Luk Fook.

Summary

Asbury Automotive Group beats Luk Fook on 9 of the 10 factors compared between the two stocks.

About Luk Fook

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry products. It offers ring and pair rings, necklaces, pendants, earrings, bangles and bracelets, charms, figurines, accessories, and other products of various materials comprising diamond, gold, platinum, jadeite, gemstone, pearl, and silver materials. The company also provides authentication of gemstones; gold bullion trading services; and software development and services related to internet. In addition, it wholesales polished diamonds; offers trademark licensing, brand building, promotion, and quality examination services, as well as diamond subcontracting handling and diamonds custom export services; and engages in electronic retailing of gold and jewelry products. The company was founded in 1991 and is headquartered in Sha Tin, Hong Kong.

About Asbury Automotive Group

Asbury Automotive Group, Inc., together with its subsidiaries, operates as an automotive retailer in the United States. It offers a range of automotive products and services, including new and used vehicles; and vehicle repair and maintenance services, replacement parts, and collision repair services. The company also provides finance and insurance products, including arranging vehicle financing through third parties; and aftermarket products, such as extended service contracts, guaranteed asset protection debt cancellation, prepaid maintenance, and disability and accident insurance. Asbury Automotive Group, Inc. was founded in 1996 and is based in Duluth, Georgia.