WallStSmart

Penske Automotive Group Inc (PAG)vsSonic Automotive Inc (SAH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Penske Automotive Group Inc generates 108% more annual revenue ($32.20B vs $15.47B). PAG leads profitability with a 2.8% profit margin vs 1.4%. SAH appears more attractively valued with a PEG of 0.45. SAH earns a higher WallStSmart Score of 59/100 (C).

PAG

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 5.5Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: 2.70

SAH

Buy

59

out of 100

Grade: C

Growth: 4.0Profit: 5.0Value: 6.7Quality: 5.5
Piotroski: 4/9Altman Z: 3.26
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for PAG.

SAHSignificantly Overvalued (-26.7%)

Margin of Safety

-26.7%

Fair Value

$48.04

Current Price

$82.44

$34.40 premium

UndervaluedFair: $48.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PAG2 strengths · Avg: 8.0/10
P/E RatioValuation
15.3x8/10

Attractively priced relative to earnings

Price/BookValuation
2.5x8/10

Reasonable price relative to book value

SAH4 strengths · Avg: 9.0/10
PEG RatioValuation
0.4510/10

Growing faster than its price suggests

Altman Z-ScoreHealth
3.2610/10

Safe zone — low bankruptcy risk

P/E RatioValuation
14.6x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

Areas to Watch

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
1.643/10

Elevated debt levels

PEG RatioValuation
2.752/10

Expensive relative to growth rate

SAH4 concerns · Avg: 2.5/10
Profit MarginProfitability
1.4%3/10

1.4% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

EPS GrowthGrowth
-12.3%2/10

Earnings declined 12.3%

Free Cash FlowQuality
$-1.50M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : PAG

The strongest argument for PAG centers on P/E Ratio, Price/Book. Revenue growth of 11.1% demonstrates continued momentum.

Bull Case : SAH

The strongest argument for SAH centers on PEG Ratio, Altman Z-Score, P/E Ratio. PEG of 0.45 suggests the stock is reasonably priced for its growth.

Bear Case : PAG

The primary concerns for PAG are Profit Margin, Operating Margin, Debt/Equity. Debt-to-equity of 1.64 is elevated, increasing financial risk. Thin 2.8% margins leave little buffer for downturns.

Bear Case : SAH

The primary concerns for SAH are Profit Margin, Operating Margin, EPS Growth. Debt-to-equity of 4.51 is elevated, increasing financial risk. Thin 1.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

SAH carries more volatility with a beta of 0.90 — expect wider price swings.

PAG is growing revenue faster at 11.1% — 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

SAH scores higher overall (59/100 vs 58/100). 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.

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Sonic Automotive Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Sonic Automotive, Inc. is an automobile retailer in the United States. The company is headquartered in Charlotte, North Carolina.

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