WallStSmart

AutoNation Inc (AN)vsPenske Automotive Group Inc (PAG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Penske Automotive Group Inc generates 15% more annual revenue ($31.72B vs $27.63B). PAG leads profitability with a 2.9% profit margin vs 2.4%. AN appears more attractively valued with a PEG of 0.78. AN earns a higher WallStSmart Score of 55/100 (C).

AN

Buy

55

out of 100

Grade: C

Growth: 3.3Profit: 6.0Value: 8.0Quality: 5.3
Piotroski: 3/9Altman Z: 3.01

PAG

Buy

53

out of 100

Grade: C-

Growth: 3.3Profit: 5.5Value: 5.3Quality: 4.3
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ANUndervalued (+13.1%)

Margin of Safety

+13.1%

Fair Value

$239.19

Current Price

$202.28

$36.91 discount

UndervaluedFair: $239.19Overvalued
PAGFair Value (-2.0%)

Margin of Safety

-2.0%

Fair Value

$169.87

Current Price

$164.91

$4.96 premium

UndervaluedFair: $169.87Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AN4 strengths · Avg: 9.3/10
P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

Altman Z-ScoreHealth
3.0110/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
27.1%9/10

Every $100 of equity generates 27 in profit

PEG RatioValuation
0.788/10

Growing faster than its price suggests

PAG2 strengths · Avg: 8.0/10
P/E RatioValuation
12.3x8/10

Attractively priced relative to earnings

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Areas to Watch

AN4 concerns · Avg: 3.3/10
EPS GrowthGrowth
1.3%4/10

1.3% earnings growth

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PAG4 concerns · Avg: 3.5/10
PEG RatioValuation
2.164/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.4%4/10

3.4% revenue growth

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : AN

The strongest argument for AN centers on P/E Ratio, Altman Z-Score, Return on Equity. PEG of 0.78 suggests the stock is reasonably priced for its growth.

Bull Case : PAG

The strongest argument for PAG centers on P/E Ratio, Price/Book.

Bear Case : AN

The primary concerns for AN are EPS Growth, Profit Margin, Operating Margin. Thin 2.4% margins leave little buffer for downturns.

Bear Case : PAG

The primary concerns for PAG are PEG Ratio, Revenue Growth, Profit Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

PAG carries more volatility with a beta of 0.86 — expect wider price swings.

PAG is growing revenue faster at 3.4% — sustainability is the question.

PAG generates stronger free cash flow (152M), providing more financial flexibility.

Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AN scores higher overall (55/100 vs 53/100). Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

AutoNation Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

AutoNation, Inc. is an automobile retailer in the United States. The company is headquartered in Fort Lauderdale, Florida.

Penske Automotive Group Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.

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