Penske Automotive Group (NYSE:PAG) and AutoZone (NYSE:AZO) are both retail/wholesale companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, dividends and analyst recommendations.
Valuation & Earnings
This table compares Penske Automotive Group and AutoZone's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Penske Automotive Group | $23.18 billion | 0.24 | $435.80 million | $5.28 | 12.86 |
AutoZone | $12.63 billion | 2.09 | $1.73 billion | $71.93 | 16.16 |
AutoZone has lower revenue, but higher earnings than Penske Automotive Group. Penske Automotive Group is trading at a lower price-to-earnings ratio than AutoZone, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Penske Automotive Group and AutoZone, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Penske Automotive Group | 0 | 2 | 6 | 0 | 2.75 |
AutoZone | 0 | 3 | 16 | 2 | 2.95 |
Penske Automotive Group currently has a consensus price target of $65.8889, indicating a potential downside of 3.18%. AutoZone has a consensus price target of $1,329.75, indicating a potential upside of 13.59%. Given AutoZone's stronger consensus rating and higher possible upside, analysts plainly believe AutoZone is more favorable than Penske Automotive Group.
Insider & Institutional Ownership
38.1% of Penske Automotive Group shares are owned by institutional investors. Comparatively, 91.6% of AutoZone shares are owned by institutional investors. 44.1% of Penske Automotive Group shares are owned by insiders. Comparatively, 2.8% of AutoZone 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.
Profitability
This table compares Penske Automotive Group and AutoZone's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Penske Automotive Group | 2.17% | 15.09% | 3.20% |
AutoZone | 14.05% | -139.08% | 13.33% |
Risk and Volatility
Penske Automotive Group has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, AutoZone has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.
Summary
AutoZone beats Penske Automotive Group on 11 of the 15 factors compared between the two stocks.