WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Penske Automotive Group Inc generates 110% more annual revenue ($31.81B vs $15.15B). SAH leads profitability with a 78.0% profit margin vs 2.9%. SAH appears more attractively valued with a PEG of 0.31. SAH earns a higher WallStSmart Score of 53/100 (C-).

PAG

Buy

51

out of 100

Grade: C-

Growth: 2.7Profit: 5.5Value: 7.3Quality: 5.3
Piotroski: 3/9

SAH

Buy

53

out of 100

Grade: C-

Growth: 2.7Profit: 6.5Value: 7.3Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PAGSignificantly Overvalued (-80.3%)

Margin of Safety

-80.3%

Fair Value

$96.08

Current Price

$148.11

$52.03 premium

UndervaluedFair: $96.08Overvalued
SAHSignificantly Overvalued (-161.6%)

Margin of Safety

-161.6%

Fair Value

$23.26

Current Price

$65.31

$42.05 premium

UndervaluedFair: $23.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PAG2 strengths · Avg: 9.0/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.8x8/10

Reasonable price relative to book value

SAH3 strengths · Avg: 9.3/10
PEG RatioValuation
0.3110/10

Growing faster than its price suggests

Profit MarginProfitability
78.0%10/10

Keeps 78 of every $100 in revenue as profit

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Areas to Watch

PAG4 concerns · Avg: 3.3/10
PEG RatioValuation
1.624/10

Expensive relative to growth rate

Profit MarginProfitability
2.9%3/10

2.9% margin — thin

Operating MarginProfitability
3.4%3/10

Operating margin of 3.4%

Debt/EquityHealth
1.563/10

Elevated debt levels

SAH4 concerns · Avg: 2.5/10
Operating MarginProfitability
3.3%3/10

Operating margin of 3.3%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-60.0%2/10

Revenue declined 60.0%

EPS GrowthGrowth
-18.5%2/10

Earnings declined 18.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : PAG

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

Bull Case : SAH

The strongest argument for SAH centers on PEG Ratio, Profit Margin, Price/Book. Profitability is solid with margins at 78.0% and operating margin at 3.3%. PEG of 0.31 suggests the stock is reasonably priced for its 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 : SAH

The primary concerns for SAH are Operating Margin, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

PAG profiles as a value stock while SAH is a declining play — different risk/reward profiles.

SAH carries more volatility with a beta of 0.91 — expect wider price swings.

PAG is growing revenue faster at -3.1% — sustainability is the question.

SAH generates stronger free cash flow (30M), providing more financial flexibility.

Bottom Line

SAH scores higher overall (53/100 vs 51/100), backed by strong 78.0% margins. 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 →

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.

Visit Website →

Want to dig deeper into these stocks?