WallStSmart

eBay Inc (EBAY)vsPenske Automotive Group Inc (PAG)

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Smart Verdict

WallStSmart Research — data-driven comparison

Penske Automotive Group Inc generates 168% more annual revenue ($32.20B vs $12.01B). EBAY leads profitability with a 18.6% profit margin vs 2.8%. EBAY appears more attractively valued with a PEG of 1.64. EBAY earns a higher WallStSmart Score of 70/100 (B-).

EBAY

Strong Buy

70

out of 100

Grade: B-

Growth: 6.7Profit: 8.5Value: 4.0Quality: 5.5
Piotroski: 4/9Altman Z: 4.49

PAG

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 5.5Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: 2.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EBAYSignificantly Overvalued (-28.7%)

Margin of Safety

-28.7%

Fair Value

$95.85

Current Price

$121.96

$26.11 premium

UndervaluedFair: $95.85Overvalued

Intrinsic value data unavailable for PAG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EBAY5 strengths · Avg: 9.4/10
Return on EquityProfitability
47.3%10/10

Every $100 of equity generates 47 in profit

EPS GrowthGrowth
55.0%10/10

Earnings expanding 55.0% YoY

Altman Z-ScoreHealth
4.4910/10

Safe zone — low bankruptcy risk

Market CapQuality
$52.52B9/10

Large-cap with strong market position

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

PAG2 strengths · Avg: 8.0/10
P/E RatioValuation
14.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

EBAY4 concerns · Avg: 3.8/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

P/E RatioValuation
25.8x4/10

Moderate valuation

Price/BookValuation
11.6x4/10

Trading at 11.6x book value

Debt/EquityHealth
1.603/10

Elevated debt levels

PAG4 concerns · Avg: 2.8/10
Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Debt/EquityHealth
1.523/10

Elevated debt levels

PEG RatioValuation
2.692/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : EBAY

The strongest argument for EBAY centers on Return on Equity, EPS Growth, Altman Z-Score. Profitability is solid with margins at 18.6% and operating margin at 21.6%. Revenue growth of 14.8% demonstrates continued momentum.

Bull Case : PAG

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

Bear Case : EBAY

The primary concerns for EBAY are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 1.60 is elevated, increasing financial risk.

Bear Case : PAG

The primary concerns for PAG are Profit Margin, Operating Margin, Debt/Equity. Debt-to-equity of 1.52 is elevated, increasing financial risk. Thin 2.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

EBAY profiles as a mature stock while PAG is a value play — different risk/reward profiles.

EBAY carries more volatility with a beta of 1.32 — expect wider price swings.

EBAY is growing revenue faster at 14.8% — sustainability is the question.

EBAY generates stronger free cash flow (749M), providing more financial flexibility.

Bottom Line

EBAY scores higher overall (70/100 vs 52/100), backed by strong 18.6% margins and 14.8% revenue growth. Both earn "Strong 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.

eBay Inc

CONSUMER CYCLICAL · INTERNET RETAIL · USA

eBay Inc. is an American multinational e-commerce corporation based in San Jose, California, that facilitates consumer-to-consumer and business-to-consumer sales through its website.

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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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