O'Reilly Automotive (NASDAQ:ORLY) and Penske Automotive Group (NYSE:PAG) are both retail/wholesale companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.
Risk and Volatility
O'Reilly Automotive has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Penske Automotive Group has a beta of 1.61, meaning that its share price is 61% more volatile than the S&P 500.
Earnings & Valuation
This table compares O'Reilly Automotive and Penske Automotive Group's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
O'Reilly Automotive | $10.15 billion | 3.21 | $1.39 billion | $17.88 | 25.17 |
Penske Automotive Group | $23.18 billion | 0.24 | $435.80 million | $5.28 | 13.21 |
O'Reilly Automotive has higher earnings, but lower revenue than Penske Automotive Group. Penske Automotive Group is trading at a lower price-to-earnings ratio than O'Reilly Automotive, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for O'Reilly Automotive and Penske Automotive Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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O'Reilly Automotive | 0 | 8 | 13 | 1 | 2.68 |
Penske Automotive Group | 0 | 2 | 6 | 0 | 2.75 |
O'Reilly Automotive currently has a consensus price target of $480.35, suggesting a potential upside of 6.45%. Penske Automotive Group has a consensus price target of $65.8889, suggesting a potential downside of 5.29%. Given O'Reilly Automotive's higher probable upside, equities analysts plainly believe O'Reilly Automotive is more favorable than Penske Automotive Group.
Insider & Institutional Ownership
82.0% of O'Reilly Automotive shares are held by institutional investors. Comparatively, 38.1% of Penske Automotive Group shares are held by institutional investors. 2.4% of O'Reilly Automotive shares are held by company insiders. Comparatively, 44.1% of Penske Automotive Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares O'Reilly Automotive and Penske Automotive Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
O'Reilly Automotive | 14.96% | 373.35% | 14.63% |
Penske Automotive Group | 2.17% | 15.09% | 3.20% |
Summary
O'Reilly Automotive beats Penske Automotive Group on 11 of the 15 factors compared between the two stocks.