Vertu Motors (VTU) Competitors

Pendragon (LON:PDG) and Vertu Motors (LON:VTU) are both small-cap consumer cyclical companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, community ranking, media sentiment, analyst recommendations, risk, dividends and valuation.

Which has better earnings and valuation, PDG or VTU?

Pendragon has higher earnings, but lower revenue than Vertu Motors. Pendragon is trading at a lower price-to-earnings ratio than Vertu Motors, 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
Pendragon	£3.86B	0.00	£46M	£0.03	N/A
Vertu Motors	£4.64B	0.05	£18.65M	£5.75	11.36

Is PDG or VTU more profitable?

Pendragon has a net margin of 1.19% compared to Vertu Motors' net margin of 0.40%. Pendragon's return on equity of 15.86% beat Vertu Motors' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Pendragon	1.19%	15.86%	4.17%
Vertu Motors	0.40%	5.37%	5.13%

Do institutionals and insiders have more ownership in PDG or VTU?

73.1% of Pendragon shares are owned by institutional investors. Comparatively, 55.4% of Vertu Motors shares are owned by institutional investors. 25.1% of Pendragon shares are owned by insiders. Comparatively, 29.4% of Vertu Motors shares are owned by 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 media prefer PDG or VTU?

In the previous week, Vertu Motors had 11 more articles in the media than Pendragon. MarketBeat recorded 11 mentions for Vertu Motors and 0 mentions for Pendragon. Vertu Motors' average media sentiment score of 1.60 beat Pendragon's score of 0.00 indicating that Vertu Motors is being referred to more favorably in the news media.

Company	Overall Sentiment
Pendragon	Neutral
Vertu Motors	Very Positive

Does the MarketBeat Community believe in PDG or VTU?

Vertu Motors received 69 more outperform votes than Pendragon when rated by MarketBeat users. Likewise, 85.30% of users gave Vertu Motors an outperform vote while only 72.67% of users gave Pendragon an outperform vote.

Company	Underperform	Outperform
Pendragon	Outperform Votes 343 72.67%	Underperform Votes 129 27.33%
Vertu Motors	Outperform Votes 412 85.30%	Underperform Votes 71 14.70%

Which has more risk & volatility, PDG or VTU?

Pendragon has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, Vertu Motors has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500.

Is PDG or VTU a better dividend stock?

Pendragon pays an annual dividend of GBX 1 per share. Vertu Motors pays an annual dividend of GBX 2 per share and has a dividend yield of 3.1%. Pendragon pays out 3,333.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vertu Motors pays out 34.8% of its earnings in the form of a dividend. Vertu Motors is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Vertu Motors beats Pendragon on 11 of the 16 factors compared between the two stocks.