Quick verdict: GPI vs M in 2026

Overall, Macy’s (M) holds an edge in traditional value and profitability metrics, securing 7 wins on our comprehensive scorecard. However, Group 1 Automotive (GPI) clearly stands out as the growth leader with robust revenue expansion and significantly higher analyst-projected upside. Analysts also show a stronger preference for GPI, giving it a “Buy” consensus compared to Macy’s “Hold”. Not investment advice.

GPI vs M: key metrics side by side

Full side-by-side comparison of GPI and M across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-30.

GPI vs M valuation comparison

When considering the GPI vs M valuation, Macy’s (M) appears to be the more attractively valued stock based on traditional multiples. M trades at a P/E ratio of 8.28x, significantly lower than GPI’s 12.58x. Similarly, M’s price-to-book ratio is 1.09x, which is also below GPI’s 1.45x, suggesting that investors are paying less for Macy’s assets and earnings relative to Group 1 Automotive. These metrics indicate M is currently cheaper from a fundamental standpoint.

However, a different perspective emerges when looking at discounted cash flow (DCF) analysis. GPI shows a substantial implied DCF upside of +158.8%, indicating a potentially significant undervaluation based on its future cash flow projections. While Macy’s also presents a healthy DCF upside of +58.6%, it is considerably less pronounced than GPI’s. This suggests that while M is cheaper by current multiples, GPI could offer more long-term value appreciation if its growth and cash flow potential are fully realized.

GPI vs M growth comparison

In terms of top-line expansion, Group 1 Automotive (GPI) demonstrates significantly stronger momentum in the GPI vs M growth comparison. GPI reported a robust year-over-year revenue growth of +13.2%, indicating healthy demand and effective business execution in the automotive retail sector. This contrasts sharply with Macy’s (M), which experienced a -1.7% revenue growth year-over-year, reflecting ongoing challenges and contraction in the department store segment. For investors prioritizing top-line expansion, GPI clearly offers more dynamic growth.

Despite GPI’s superior revenue growth, it operates with tighter profit margins compared to Macy’s. GPI’s net margin stands at 1.45% and EBITDA margin at 3.64%, which is typical for the auto dealership industry. Macy’s, while struggling with revenue contraction, still maintains higher profitability with a net margin of 2.84% and an EBITDA margin of 8.51%. This highlights a trade-off: GPI offers higher growth at lower current profitability, whereas M struggles with growth but generates more profit from each dollar of sales.

GPI vs M profitability

When assessing GPI vs M profitability, Macy’s (M) demonstrates superior margins, indicating a more efficient operation in converting revenue into profit. M’s net margin of 2.84% is nearly double that of GPI’s 1.45%. This suggests that Macy’s retains a larger portion of its sales as profit after all expenses, including taxes, are accounted for. Similarly, Macy’s EBITDA margin of 8.51% significantly surpasses GPI’s 3.64%, reflecting better operational efficiency before considering depreciation, amortization, interest, and taxes.

Regarding return on equity (ROE), both companies currently report N/A%, which means we cannot directly compare their efficiency in generating profits from shareholder equity. However, when examining free cash flow (FCF) yield, Macy’s again stands out. M boasts an FCF yield of 20.39%, substantially higher than GPI’s 9.5%. This metric indicates that Macy’s generates considerably more free cash flow relative to its market capitalization, providing greater financial flexibility for debt reduction, dividends, or share buybacks, and suggesting that it generates more cash for its investors.

Analyst ratings: GPI vs M

The consensus among analysts shows a clear preference in the analyst ratings for GPI vs M. Group 1 Automotive (GPI) is highly regarded, with 50.0% of the 24 analysts covering the stock issuing a “Buy” rating, leading to an overall “Buy” consensus. Analysts have set an average target price of $476.67 for GPI, which implies a significant upside potential of +39.2% from its current price of $342.45. This strong endorsement reflects optimism about GPI’s future performance and growth trajectory.

In contrast, Macy’s (M) garners less enthusiasm from the investment community. Out of 40 analysts, only 32.5% recommend a “Buy,” resulting in a more conservative “Hold” consensus. Furthermore, the average analyst target price for M is $19.2, which, compared to its current price of $19.655, suggests a modest downside of -2.3%. This indicates that while analysts don’t foresee a sharp decline, they do not anticipate significant positive price movement for Macy’s in the near term.

Should I buy GPI or M stock in 2026?

For growth-oriented investors asking “should I buy GPI or M stock in 2026,” Group 1 Automotive (GPI) presents a more compelling narrative. GPI’s impressive 13.2% year-over-year revenue growth far outpaces Macy’s contraction of -1.7%. This indicates GPI’s strong operational momentum and ability to expand its top line in the current economic environment. Coupled with a substantial DCF upside of +158.8% and analyst price target upside of +39.2%, GPI appears to offer greater potential for capital appreciation driven by future earnings expansion. This is not investment advice.

Value investors, however, might find Macy’s (M) more appealing based on traditional valuation metrics. M trades at a lower P/E ratio of 8.28x compared to GPI’s 12.58x, and its P/B ratio of 1.09x is also more attractive than GPI’s 1.45x. While Macy’s revenue growth has been negative, its stronger margins (net margin 2.84% vs GPI’s 1.45%) and significantly higher free cash flow yield of 20.39% suggest a more efficient and cash-generative business, potentially offering a safer entry point for those seeking undervalued assets. This is not investment advice.

For income-focused investors, the decision between GPI and M stock in 2026 leans towards Macy’s. Both companies pay dividends, but Macy’s offers a higher dividend yield of 0.04% compared to GPI’s 0.01%. While neither yield is particularly high, M provides a modestly better return for shareholders seeking regular payouts. When combining this with M’s superior free cash flow generation, it suggests a greater capacity to sustain or potentially grow its dividend over time, making it the slightly better choice for income. This is not investment advice.

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FAQ: GPI vs M