ABG vs AN: Which Is the Better Buy in 2026?
Last updated August 2026
Short answer
AN is the larger of the two ($7.11B market cap): the incumbent the market prices for continued execution (8.71x forward earnings, beta 0.75). ABG is the smaller challenger ($4.31B), priced similarly on forward earnings (7.68x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.
ABG vs AN: the tie-breaker metrics
Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.
| Metric | ABG | AN | What it tells you |
|---|---|---|---|
| Market cap | $4.31B | $7.11B | Size. The larger name is the incumbent; the smaller has more room to grow and more to prove. |
| Forward P/E | 7.68 | 8.71 | Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up. |
| Trailing P/E | 8.62 | 9.84 | Valuation on the last 12 months. A big drop from trailing to forward means the market expects earnings to jump, so more growth is already in the price. |
| Beta | 0.74 | 0.75 | Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through. |
| Price vs 52-week range | 65% of range | 60% of range | Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why. |
| Price / book | 1.10 | 3.19 | How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price. |
Before you buy: how ABG and AN affect your concentration
The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ABG and AN share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.
This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ABG and AN exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.
What does Asbury Automotive Group (ABG) do?
Asbury Automotive Group is a Fortune 500 automotive retailer headquartered in Atlanta, operating around 171 new-vehicle dealerships representing roughly 223 franchises and 36 brands as of year-end 2025, alongside about 39 collision centers. Over 70 percent of its new-vehicle revenue comes from luxury and import brands, and its store banners include Herb Chambers in the Northeast, Park Place and McDavid in Texas, Koons around Washington, D.C., and the Larry H. Miller group in the West. Beyond selling new and used cars, Asbury earns higher-margin income from parts and service and from finance-and-insurance products through Total Care Auto, its in-house provider of service contracts and vehicle protection plans.
What does AutoNation (AN) do?
AutoNation operates a nationwide network of franchised new-vehicle dealerships across three segments (Domestic brands like GM and Ford, Import brands like Toyota and Honda, and Premium Luxury brands like Mercedes-Benz and BMW), alongside standalone AutoNation USA used-vehicle stores, collision centers, and an in-house lending arm, AutoNation Finance. The company sells new and used vehicles, but its most profitable work is aftersales (parts, service, and repair) and finance and insurance products, which together make up roughly 22% of revenue yet contribute around 75% of gross profit.
ABG vs AN: how do they differ?
Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.
- ABG drivers: Parts and service and F&I durability; Portfolio optimization and buybacks.
- AN drivers: Aftersales and higher-margin mix; Used vehicles and AutoNation USA.
Which fits which kind of investor
A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Auto retail is highly cyclical and sensitive to interest rates, vehicle affordability, and consumer confidence, so a downturn in new-vehicle demand can pressure both volumes and gross profit per unit. For AN, auto retailing is cyclical and sensitive to interest rates, vehicle affordability, and consumer confidence, all of which can pressure unit volumes and gross profit per vehicle.
ABG or AN: which should you pick?
Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ABG if you believe its drivers more; AN if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ABG and AN guides.
ABG vs AN: the full fundamentals
ABG. As of July 2026 the shares traded near $212, giving a market cap around $3.8 billion against roughly $18 billion of trailing revenue, so the price-to-earnings ratio sits in the mid-to-high single digits, close to the company's five-year median. Q1 2026 revenue was about $4.1 billion, down roughly 1 percent year over year, and adjusted EPS of about $5.37 came in below analyst estimates as new-vehicle margins normalized. Reported net income jumped, but that was flattered by gains on dealership divestitures rather than core operating growth.
AN. AutoNation trades at a low earnings multiple relative to the broad market, which is typical for cyclical, capital-intensive auto dealers. Gross margin improved modestly to about 18.5% in Q1 2026, and adjusted free cash flow was roughly $256 million, funding the sizable buyback program.
Headline figures (approximate, JULY 2026): ABG shows revenue (ttm) ~$18B, q1 2026 revenue ~$4.1B, q1 2026 adjusted eps ~$5.37, market cap ~$3.8B; AN shows revenue (ttm) ~$27.6B, q1 2026 revenue ~$6.6B, q1 2026 adjusted eps ~$4.69, market cap ~$8B.
The bottom line: ABG vs AN
ABG and AN are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ABG and AN exposure against your real portfolio. It is not an investment adviser.
Wondering how ABG or AN fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Asbury Automotive Group with AI
Connect the broker you already use and ask Walnut's AI how ABG fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is the difference between ABG and AN?
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Asbury Automotive Group is a Fortune 500 automotive retailer headquartered in Atlanta, operating around 171 new-vehicle dealerships representing roughly 223 franchises and 36 brands as of year-end 2025, alongside about 39 collision centers. AutoNation operates a nationwide network of franchised new-vehicle dealerships across three segments (Domestic brands like GM and Ford, Import brands like Toyota and Honda, and Premium Luxury brands like Mercedes-Benz and BMW), alongside standalone AutoNation USA used-vehicle stores, collision centers, and an in-house lending arm, AutoNation Finance. They show up together because they share investment themes, but they are different businesses, so the better fit depends on which thesis you are expressing.
Is ABG or AN the better stock?
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Neither is universally better. AN is the larger incumbent; ABG is the smaller challenger and looks cheaper on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.
Which is cheaper, ABG or AN?
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On forward P/E (as of August 2026), ABG trades at 7.68x and AN at 8.71x, so ABG is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.
Should you own both ABG and AN?
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Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.
What are the risks of ABG vs AN?
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ABG: Auto retail is highly cyclical and sensitive to interest rates, vehicle affordability, and consumer confidence, so a downturn in new-vehicle demand can pressure both volumes and gross profit per unit. New-vehicle margins have been normalizing lower from unusually high pandemic-era levels, which weighs on adjusted earnings even when reported profits look strong. The company's leverage is significant, so higher-for-longer interest rates raise financing costs on both floor-plan inventory and corporate debt. Longer term, the shift toward electric vehicles and any move toward agency or direct-to-consumer sales models could reshape dealer economics. Integration risk from large acquisitions and exposure to manufacturer incentive policies add further uncertainty. AN: Auto retailing is cyclical and sensitive to interest rates, vehicle affordability, and consumer confidence, all of which can pressure unit volumes and gross profit per vehicle. New-vehicle pricing and margins have been normalizing lower from post-pandemic highs, and same-store new-unit sales have declined. The finance arm adds credit and funding risk if loan losses rise in a weaker economy. The business is capital-intensive, carries meaningful debt and floorplan financing, and depends on manufacturer relationships and inventory allocations. Longer term, the shift to electric vehicles and any changes to the franchised-dealer model could reshape the industry.
Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell ABG or AN; figures are approximate and dated (as of August 2026). Verify current data before investing.