Group 1 Automotive (NYSE:GPI – Get Rating) and D’Ieteren Group (OTCMKTS:SIEVF – Get Rating) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Institutional & Insider Ownership
97.7% of Group 1 Automotive shares are owned by institutional investors. Comparatively, 13.8% of D’Ieteren Group shares are owned by institutional investors. 3.5% of Group 1 Automotive shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Dividends
Group 1 Automotive pays an annual dividend of $1.80 per share and has a dividend yield of 0.8%. D’Ieteren Group pays an annual dividend of 0.60 per share and has a dividend yield of 0.3%. Group 1 Automotive pays out 3.9% of its earnings in the form of a dividend. D’Ieteren Group pays out 32.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Group 1 Automotive has raised its dividend for 4 consecutive years. Group 1 Automotive is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Group 1 Automotive | 1 | 0 | 2 | 0 | 2.33 |
| D’Ieteren Group | 0 | 0 | 1 | 0 | 3.00 |
Group 1 Automotive presently has a consensus target price of $253.00, indicating a potential upside of 6.44%. Given Group 1 Automotive’s higher possible upside, research analysts clearly believe Group 1 Automotive is more favorable than D’Ieteren Group.
Earnings and Valuation
This table compares Group 1 Automotive and D’Ieteren Group’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Group 1 Automotive | $16.22 billion | 0.21 | $751.50 million | $46.24 | 5.14 |
| D’Ieteren Group | N/A | N/A | N/A | 1.83 | 102.15 |
Group 1 Automotive has higher revenue and earnings than D’Ieteren Group. Group 1 Automotive is trading at a lower price-to-earnings ratio than D’Ieteren Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Group 1 Automotive and D’Ieteren Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Group 1 Automotive | 4.20% | 31.16% | 10.56% |
| D’Ieteren Group | N/A | N/A | N/A |
Summary
Group 1 Automotive beats D’Ieteren Group on 12 of the 14 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 headquarters in Houston, Texas.
About D’Ieteren Group
D'Ieteren Group SA operates as an investment company worldwide. The company operates through D'Ieteren Automotive, Belron, Moleskine, TVH, and PHE segments. It distributes Volkswagen, Audi, SEAT, KODA, CUPRA, Bentley, Lamborghini, Bugatti, Rimac, Microlino, and Porsche brand vehicles, as well as its spare parts and accessories; sells used vehicles; and offers maintenance, financing, and leasing services. The company also provides vehicle glass repair, replacement, and recalibration services under the Carglass, Safelite, Lebeau Vitres d'auto, Speedy Glass, O'Brien, Smith&Smith, and Autoglass brand names; and manages vehicle glass and other insurance claims on behalf of insurance customers. In addition, it offers notebooks, planners, writing tools, bags, and reading accessories, as well as smart writing system and mobile apps. Further, the company distributes aftermarket parts for material handling, construction, and agricultural & industrial equipment. Additionally, it manages real estate assets, including offices, workshops, concessions, logistics centers, residential units, car parks, and landbanks; reconverts and redevelops sites; and offers real estate advice. D'Ieteren Group SA was founded in 1805 and is headquartered in Brussels, Belgium.
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