Penske Automotive Group (PAG) Competitors

Penske Automotive Group (NYSE:PAG) and CarMax (NYSE:KMX) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, media sentiment, risk, community ranking, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Which has better earnings and valuation, PAG or KMX?

Penske Automotive Group has higher revenue and earnings than CarMax. Penske Automotive Group is trading at a lower price-to-earnings ratio than CarMax, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Penske Automotive Group	$29.53B	0.34	$1.05B	$14.38	10.36
CarMax	$26.54B	0.41	$479.20M	$3.03	22.83

Do insiders and institutionals hold more shares of PAG or KMX?

77.1% of Penske Automotive Group shares are owned by institutional investors. 51.7% of Penske Automotive Group shares are owned by company insiders. Comparatively, 1.7% of CarMax shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Does the MarketBeat Community prefer PAG or KMX?

CarMax received 338 more outperform votes than Penske Automotive Group when rated by MarketBeat users. Likewise, 63.84% of users gave CarMax an outperform vote while only 60.45% of users gave Penske Automotive Group an outperform vote.

Company	Underperform	Outperform
Penske Automotive Group	Outperform Votes 347 60.45%	Underperform Votes 227 39.55%
CarMax	Outperform Votes 685 63.84%	Underperform Votes 388 36.16%

Does the media refer more to PAG or KMX?

In the previous week, CarMax had 15 more articles in the media than Penske Automotive Group. MarketBeat recorded 19 mentions for CarMax and 4 mentions for Penske Automotive Group. Penske Automotive Group's average media sentiment score of 1.04 beat CarMax's score of 0.60 indicating that Penske Automotive Group is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Penske Automotive Group	2 Very Positive mention(s)	1 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
CarMax	9 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts rate PAG or KMX?

Penske Automotive Group presently has a consensus price target of $163.20, suggesting a potential upside of 9.59%. CarMax has a consensus price target of $76.92, suggesting a potential upside of 11.20%. Given CarMax's stronger consensus rating and higher possible upside, analysts clearly believe CarMax is more favorable than Penske Automotive Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Penske Automotive Group	2 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.00
CarMax	2 Sell rating(s)	5 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.25

Which has more volatility and risk, PAG or KMX?

Penske Automotive Group has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, CarMax has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.

Is PAG or KMX more profitable?

Penske Automotive Group has a net margin of 3.27% compared to CarMax's net margin of 1.81%. Penske Automotive Group's return on equity of 21.72% beat CarMax's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Penske Automotive Group	3.27%	21.72%	6.56%
CarMax	1.81%	7.26%	1.60%

Summary

Penske Automotive Group and CarMax tied by winning 9 of the 18 factors compared between the two stocks.