WallStSmart

ACV Auctions Inc. (ACVA)vsPenske Automotive Group Inc (PAG)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Penske Automotive Group Inc generates 3918% more annual revenue ($32.20B vs $801.34M). PAG leads profitability with a 2.8% profit margin vs -7.9%. PAG earns a higher WallStSmart Score of 52/100 (C-).

ACVA

Avoid

34

out of 100

Grade: F

Growth: 6.7Profit: 2.0Value: 6.7Quality: 5.0
Piotroski: 5/9Altman Z: 0.47

PAG

Buy

52

out of 100

Grade: C-

Growth: 4.0Profit: 5.5Value: 5.7Quality: 5.0
Piotroski: 4/9Altman Z: 2.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ACVAUndervalued (+56.9%)

Margin of Safety

+56.9%

Fair Value

$16.70

Current Price

$10.41

$6.29 discount

UndervaluedFair: $16.70Overvalued

Intrinsic value data unavailable for PAG.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ACVA0 strengths · Avg: 0/10

No standout strengths identified

PAG2 strengths · Avg: 8.0/10
P/E RatioValuation
16.0x8/10

Attractively priced relative to earnings

Price/BookValuation
2.4x8/10

Reasonable price relative to book value

Areas to Watch

ACVA4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.29B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-14.4%2/10

ROE of -14.4% — below average capital efficiency

Free Cash FlowQuality
$-44.15M2/10

Negative free cash flow — burning cash

PAG4 concerns · Avg: 3.3/10
PEG RatioValuation
2.214/10

Expensive relative to growth rate

Profit MarginProfitability
2.8%3/10

2.8% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Debt/EquityHealth
1.593/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : ACVA

Revenue growth of 10.4% demonstrates continued momentum.

Bull Case : PAG

The strongest argument for PAG centers on P/E Ratio, Price/Book.

Bear Case : ACVA

The primary concerns for ACVA are EPS Growth, Market Cap, Return on Equity.

Bear Case : PAG

The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.59 is elevated, increasing financial risk. Thin 2.8% margins leave little buffer for downturns.

Key Dynamics to Monitor

ACVA profiles as a turnaround stock while PAG is a value play — different risk/reward profiles.

ACVA carries more volatility with a beta of 1.83 — expect wider price swings.

ACVA is growing revenue faster at 10.4% — sustainability is the question.

PAG generates stronger free cash flow (132M), providing more financial flexibility.

Bottom Line

PAG scores higher overall (52/100 vs 34/100). ACVA offers better value entry with a 56.9% margin of safety. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

ACV Auctions Inc.

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

ACV Auctions, Inc., operates a digital marketplace that connects buyers and sellers for online wholesale vehicle auctions. The company is headquartered in Buffalo, New York.

Penske Automotive Group Inc

CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA

Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.

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