Penske Automotive Group (PAG) Competitors

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

Which has more volatility and risk, PAG or KMX?

Penske Automotive Group has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, CarMax has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Does the media prefer PAG or KMX?

In the previous week, Penske Automotive Group had 1 more articles in the media than CarMax. MarketBeat recorded 11 mentions for Penske Automotive Group and 10 mentions for CarMax. CarMax's average media sentiment score of 1.36 beat Penske Automotive Group's score of 0.64 indicating that CarMax is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Penske Automotive Group	5 Very Positive mention(s)	1 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
CarMax	7 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is PAG or KMX more profitable?

Penske Automotive Group has a net margin of 3.02% compared to CarMax's net margin of 1.77%. Penske Automotive Group's return on equity of 18.05% beat CarMax's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Penske Automotive Group	3.02%	18.05%	5.50%
CarMax	1.77%	7.49%	1.69%

Which has stronger earnings & 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	$30.61B	0.36	$918.90M	$14.20	11.85
CarMax	$26.35B	0.39	$479.20M	$3.21	21.12

Do analysts rate PAG or KMX?

Penske Automotive Group presently has a consensus price target of $167.00, suggesting a potential downside of 0.78%. CarMax has a consensus price target of $85.82, suggesting a potential upside of 26.60%. Given CarMax's 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	1 Sell rating(s)	1 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.50
CarMax	3 Sell rating(s)	3 Hold rating(s)	7 Buy rating(s)	1 Strong Buy rating(s)	2.43

Do insiders & institutionals have more ownership in 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 insiders. Comparatively, 1.7% of CarMax shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Does the MarketBeat Community prefer PAG or KMX?

CarMax received 359 more outperform votes than Penske Automotive Group when rated by MarketBeat users. Likewise, 63.30% of users gave CarMax an outperform vote while only 60.07% of users gave Penske Automotive Group an outperform vote.

Company	Underperform	Outperform
Penske Automotive Group	Outperform Votes 355 60.07%	Underperform Votes 236 39.93%
CarMax	Outperform Votes 714 63.30%	Underperform Votes 414 36.70%

Summary

Penske Automotive Group beats CarMax on 10 of the 19 factors compared between the two stocks.