Penske Automotive Group (PAG) Competitors

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

Does the MarketBeat Community prefer PAG or LAD?

Lithia Motors received 133 more outperform votes than Penske Automotive Group when rated by MarketBeat users. Likewise, 67.32% of users gave Lithia Motors 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%
Lithia Motors	Outperform Votes 480 67.32%	Underperform Votes 233 32.68%

Which has more volatility & risk, PAG or LAD?

Penske Automotive Group has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500. Comparatively, Lithia Motors has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.

Does the media prefer PAG or LAD?

In the previous week, Lithia Motors had 26 more articles in the media than Penske Automotive Group. MarketBeat recorded 31 mentions for Lithia Motors and 5 mentions for Penske Automotive Group. Lithia Motors' average media sentiment score of 0.11 beat Penske Automotive Group's score of -0.26 indicating that Lithia Motors is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Penske Automotive Group	3 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Lithia Motors	9 Very Positive mention(s)	5 Positive mention(s)	5 Neutral mention(s)	4 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do analysts recommend PAG or LAD?

Penske Automotive Group currently has a consensus target price of $163.20, suggesting a potential upside of 4.46%. Lithia Motors has a consensus target price of $320.82, suggesting a potential upside of 22.14%. Given Lithia Motors' stronger consensus rating and higher possible upside, analysts clearly believe Lithia Motors 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
Lithia Motors	1 Sell rating(s)	4 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.40

Is PAG or LAD a better dividend stock?

Penske Automotive Group pays an annual dividend of $3.48 per share and has a dividend yield of 2.2%. Lithia Motors pays an annual dividend of $2.00 per share and has a dividend yield of 0.8%. Penske Automotive Group pays out 22.5% of its earnings in the form of a dividend. Lithia Motors pays out 5.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Is PAG or LAD more profitable?

Penske Automotive Group has a net margin of 3.57% compared to Lithia Motors' net margin of 2.87%. Penske Automotive Group's return on equity of 24.19% beat Lithia Motors' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Penske Automotive Group	3.57%	24.19%	7.32%
Lithia Motors	2.87%	15.59%	4.90%

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

77.1% of Penske Automotive Group shares are owned by institutional investors. 51.7% of Penske Automotive Group shares are owned by insiders. Comparatively, 1.8% of Lithia 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.

Which has higher valuation & earnings, PAG or LAD?

Penske Automotive Group has higher earnings, but lower revenue than Lithia Motors. Lithia Motors is trading at a lower price-to-earnings ratio than Penske Automotive Group, 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	0.36	$1.05B	$15.48	10.10
Lithia Motors	$31.04B	0.23	$1.00B	$33.87	7.73

Summary

Lithia Motors beats Penske Automotive Group on 11 of the 20 factors compared between the two stocks.