KAR Auction Services Inc (KAR)vsPenske Automotive Group Inc (PAG)
KAR
KAR Auction Services Inc
$30.88
+0.36%
CONSUMER CYCLICAL · Cap: $3.28B
PAG
Penske Automotive Group Inc
$148.11
+1.33%
CONSUMER CYCLICAL · Cap: $9.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 1578% more annual revenue ($31.81B vs $1.90B). KAR leads profitability with a 9.0% profit margin vs 2.9%. KAR appears more attractively valued with a PEG of 1.34. KAR earns a higher WallStSmart Score of 65/100 (B-).
KAR
Strong Buy65
out of 100
Grade: B-
PAG
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+24.2%
Fair Value
$40.72
Current Price
$30.88
$9.84 discount
Margin of Safety
-80.3%
Fair Value
$96.08
Current Price
$148.11
$52.03 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 108.3% YoY
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
Premium valuation, high expectations priced in
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.4%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : KAR
The strongest argument for KAR centers on EPS Growth, Price/Book. PEG of 1.34 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 : KAR
The primary concerns for KAR are P/E Ratio.
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
KAR carries more volatility with a beta of 1.25 — expect wider price swings.
KAR is growing revenue faster at 8.4% — sustainability is the question.
KAR generates stronger free cash flow (111M), providing more financial flexibility.
Monitor AUTO & TRUCK DEALERSHIPS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
KAR scores higher overall (65/100 vs 51/100). 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.
KAR Auction Services Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
KAR Auction Services, Inc. provides used vehicle auctions and related vehicle remarketing services for the automotive industry in the United States, Europe, Canada, Mexico, and the United Kingdom. The company is headquartered in Carmel, Indiana.
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 →Compare with Other AUTO & TRUCK DEALERSHIPS Stocks
Want to dig deeper into these stocks?