Penske Automotive Group (PAG) vs. The Competition Financial Comparison


Penske Automotive Group (NYSE: PAG) is one of 20 publicly-traded companies in the “Automotive dealers & gasoline service stations” industry, but how does it compare to its peers? We will compare Penske Automotive Group to similar companies based on the strength of its earnings, valuation, institutional ownership, dividends, analyst recommendations, risk and profitability.

Dividends

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Penske Automotive Group pays an annual dividend of $1.36 per share and has a dividend yield of 2.9%. Penske Automotive Group pays out 31.6% of its earnings in the form of a dividend. As a group, “Automotive dealers & gasoline service stations” companies pay a dividend yield of 1.6% and pay out 20.5% of their earnings in the form of a dividend. Penske Automotive Group has raised its dividend for 7 consecutive years.


Risk and Volatility

Penske Automotive Group has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Penske Automotive Group’s peers have a beta of 10.08, meaning that their average stock price is 908% more volatile than the S&P 500.

Insider & Institutional Ownership

41.4% of Penske Automotive Group shares are held by institutional investors. Comparatively, 62.0% of shares of all “Automotive dealers & gasoline service stations” companies are held by institutional investors. 40.7% of Penske Automotive Group shares are held by insiders. Comparatively, 16.5% of shares of all “Automotive dealers & gasoline service stations” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.


Profitability

This table compares Penske Automotive Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Penske Automotive Group 2.90% 17.56% 3.84%
Penske Automotive Group Competitors 3.23% 33.56% 3.66%

Analyst Ratings

This is a summary of current ratings and recommmendations for Penske Automotive Group and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Penske Automotive Group 0 3 5 0 2.63
Penske Automotive Group Competitors 117 632 673 30 2.42

Penske Automotive Group currently has a consensus target price of $55.29, suggesting a potential upside of 18.03%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 15.70%. Given Penske Automotive Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Penske Automotive Group is more favorable than its peers.

Earnings & Valuation

This table compares Penske Automotive Group and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Penske Automotive Group $21.39 billion $613.30 million 10.87
Penske Automotive Group Competitors $8.01 billion $220.42 million 12.50

Penske Automotive Group has higher revenue and earnings than its peers. Penske Automotive Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Penske Automotive Group beats its peers on 8 of the 15 factors compared.

About Penske Automotive Group

Penske Automotive Group, Inc. operates as a transportation services company. The company operates through four segments: Retail Automotive, Retail Commercial Truck, Other, and Non-Automotive Investments. It operates automotive and commercial truck dealerships principally in the United States, Canada, and Western Europe; and distributes commercial vehicles, diesel engines, gas engines, power systems, and related parts and services primarily in Australia and New Zealand. The company engages in the sale of new and used motor vehicles of approximately 40 brands; and provision of vehicle services and collision repair services. In addition, it is involved in the sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, and replacement and aftermarket automotive products. Further, the company distributes commercial vehicles and parts to a network of approximately 70 dealership locations, including 8 company-owned retail commercial vehicle dealerships. As of December 31, 2017, it operated 343 automotive retail franchises, of which 155 franchises are located in the United States; and 188 franchises are located outside of the United States primarily in the United Kingdom. The company also operated 20 dealerships locations of heavy and medium duty trucks, offering primarily Freightliner and Western Star branded trucks, as well as a range of used trucks, and services and parts. Penske Automotive Group, Inc. is headquartered in Bloomfield Hills, Michigan.