WallStSmart

Edwards Lifesciences Corp (EW)vsPenske Automotive Group Inc (PAG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Penske Automotive Group Inc generates 403% more annual revenue ($31.72B vs $6.30B). EW leads profitability with a 17.4% profit margin vs 2.9%. EW appears more attractively valued with a PEG of 2.04. EW earns a higher WallStSmart Score of 61/100 (C+).

EW

Buy

61

out of 100

Grade: C+

Growth: 6.0Profit: 7.5Value: 6.0Quality: 4.8
Piotroski: 2/9

PAG

Buy

51

out of 100

Grade: C-

Growth: 2.7Profit: 5.5Value: 5.3Quality: 4.3
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

EWUndervalued (+69.7%)

Margin of Safety

+69.7%

Fair Value

$261.90

Current Price

$79.96

$181.94 discount

UndervaluedFair: $261.90Overvalued
PAGFair Value (-1.7%)

Margin of Safety

-1.7%

Fair Value

$170.26

Current Price

$173.81

$3.55 premium

UndervaluedFair: $170.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

EW2 strengths · Avg: 9.0/10
Operating MarginProfitability
31.2%10/10

Strong operational efficiency at 31.2%

Revenue GrowthGrowth
16.7%8/10

16.7% revenue growth

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

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

EW4 concerns · Avg: 2.8/10
PEG RatioValuation
2.044/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
44.7x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-21.10M2/10

Negative free cash flow — burning cash

PAG4 concerns · Avg: 3.3/10
PEG RatioValuation
2.094/10

Expensive relative to growth rate

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

Debt/EquityHealth
1.563/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : EW

The strongest argument for EW centers on Operating Margin, Revenue Growth. Profitability is solid with margins at 17.4% and operating margin at 31.2%. Revenue growth of 16.7% demonstrates continued momentum.

Bull Case : PAG

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

Bear Case : EW

The primary concerns for EW are PEG Ratio, Piotroski F-Score, P/E Ratio. A P/E of 44.7x leaves little room for execution misses.

Bear Case : PAG

The primary concerns for PAG are PEG Ratio, Profit Margin, Operating 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

EW profiles as a growth stock while PAG is a value play — different risk/reward profiles.

PAG carries more volatility with a beta of 0.89 — expect wider price swings.

EW is growing revenue faster at 16.7% — sustainability is the question.

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

Bottom Line

EW scores higher overall (61/100 vs 51/100), backed by strong 17.4% margins and 16.7% revenue growth. 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.

Edwards Lifesciences Corp

HEALTHCARE · MEDICAL DEVICES · USA

Edwards Lifesciences is an American medical technology company headquartered in Irvine, California, specializing in artificial heart valves and hemodynamic monitoring.

Visit Website →

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.

Visit Website →

Want to dig deeper into these stocks?