Which Dealership Stock I’m Betting On in the Digital Era

1 hour ago 2

William Temple

Thu, December 18, 2025 astatine 8:02 AM CST 5 min read

24/7 Wall St.

Asbury Automotive posted 13% gross maturation successful Q3, outpacing AutoNation’s 6.9% and Lithia’s 4.9%.
Asbury’s Tekion level reduced work advisor grooming clip from 5 days to 1 time during aviator testing.
Asbury trades astatine 8x P/E contempt faster maturation than AutoNation (12x P/E) and Lithia (10x P/E).
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The automotive retail manufacture is undergoing a integer transformation, with dealership groups racing to modernize operations done cloud-based platforms. Asbury Automotive Group (NYSE: ABG), AutoNation (NYSE: AN), and Lithia Motors (NYSE: LAD) are each betting connected exertion to thrust efficiency, but the information reveals 1 wide leader.

Asbury Automotive operates 175 caller conveyance dealerships and 39 collision centers, generating $4.80 cardinal successful gross during Q3 2025. The institution is rolling retired Tekion's cloud-based dealership absorption strategy crossed its full network. CEO David Hult emphasized this strategical absorption during the caller net call, noting the level enlargement to each Baltimore-DC marketplace stores marked an important milestone.

AutoNation is the largest automotive retailer successful the United States, with $27.92 cardinal successful trailing twelve-month revenue. The Fort Lauderdale-based institution operates a immense dealership web crossed assorted automotive brands. AutoNation has invested heavy successful integer retail innovations and omnichannel platforms, enabling customers to implicit astir 80% of the car-buying process online.

Lithia Motors is the second-largest automotive retailer with $37.61 cardinal successful revenue. The Medford, Oregon-based institution has pursued assertive acquisitions portion gathering its Driveway integer platform. Lithia averaged 1.3 cardinal unsocial visitors per period to its level during Q2 2025.

The 3 companies amusement stark differences successful operational ratio and maturation trajectories. Asbury posted 13% gross maturation year-over-year successful Q3, importantly outpacing AutoNation's 6.9% and Lithia's 4.9%. Asbury's nett borderline of 3.15% exceeds AutoNation's 2.38%, contempt AutoNation's larger scale.

Asbury's Tekion implementation is delivering measurable results. During the four-store aviator program, productivity per worker accrued crossed each locations. Training clip for work advisors dropped from 5 days to 1 day. The level is eliminating astir 70% of third-party plug-ins, reducing complexity and costs. The institution plans to implicit the afloat modulation by 2027.