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

"Three Dealership Giants, One Digital Race Asbury Automotive operates 175 new vehicle dealerships and 39 collision centers, generating $4.80 billion in revenue during Q3 2025. The company is rolling out Tekion's cloud-based dealership management system across its entire network. CEO David Hult emphasized this strategic focus during the recent earnings call, noting the platform expansion to all Baltimore-DC market stores marked an important milestone."

"Comparing Business Fundamentals and Digital Positioning The three companies show stark differences in operational efficiency and growth trajectories. Asbury posted 13% revenue growth year-over-year in Q3, significantly outpacing AutoNation's 6.9% and Lithia's 4.9%. Asbury's profit margin of 3.15% exceeds AutoNation's 2.38%, despite AutoNation's larger scale. Asbury's Tekion implementation is delivering measurable results. During the four-store pilot program, productivity per employee increased across all locations."

Dealership groups are adopting cloud-based platforms to modernize operations and improve efficiency. Asbury Automotive operates 175 new-vehicle dealerships and 39 collision centers, generating $4.80 billion in Q3 2025 and deploying Tekion across its network, including Baltimore-DC market stores. AutoNation, the largest U.S. retailer, reported $27.92 billion in trailing twelve-month revenue and enables roughly 80% of the purchase process online. Lithia, with $37.61 billion in revenue, pursued acquisitions while building a Driveway platform averaging 1.3 million monthly unique visitors. Asbury delivered 13% year-over-year revenue growth, a 3.15% profit margin, and Tekion pilot productivity gains per employee.

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