Penske Automotive Group Inc (PAG)vsPepsiCo Inc (PEP)
PAG
Penske Automotive Group Inc
$173.81
+1.28%
CONSUMER CYCLICAL · Cap: $11.16B
PEP
PepsiCo Inc
$154.62
-1.07%
CONSUMER DEFENSIVE · Cap: $213.64B
Smart Verdict
WallStSmart Research — data-driven comparison
PepsiCo Inc generates 201% more annual revenue ($95.45B vs $31.72B). PEP leads profitability with a 9.2% profit margin vs 2.9%. PEP appears more attractively valued with a PEG of 1.68. PEP earns a higher WallStSmart Score of 63/100 (C+).
PAG
Buy51
out of 100
Grade: C-
PEP
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1.7%
Fair Value
$170.26
Current Price
$173.81
$3.55 premium
Margin of Safety
+0.1%
Fair Value
$154.78
Current Price
$154.62
$0.16 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Mega-cap, among the largest globally
Every $100 of equity generates 44 in profit
Earnings expanding 27.8% YoY
Areas to Watch
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.7%
Elevated debt levels
Expensive relative to growth rate
Trading at 9.9x book value
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull Case : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bull Case : PEP
The strongest argument for PEP centers on Market Cap, Return on Equity, EPS Growth.
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.
Bear Case : PEP
The primary concerns for PEP are PEG Ratio, Price/Book, Piotroski F-Score.
Key Dynamics to Monitor
PAG carries more volatility with a beta of 0.89 — expect wider price swings.
PEP is growing revenue faster at 8.5% — 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
PEP scores higher overall (63/100 vs 51/100). 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.
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 →PepsiCo Inc
CONSUMER DEFENSIVE · BEVERAGES - NON-ALCOHOLIC · USA
PepsiCo, Inc. is an American based multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo's business encompasses all aspects of the food and beverage market. It oversees the manufacturing, distribution, and marketing of its products.
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